Welcome to possibility€¦ · Sustainability overview 12 Group President and CEO’s message 2 Delivering on our commitments 4 Executive summary 5 Sustainability and MTN’s business

MTN Group LimitedSustainability Report – for the year ended 31 December 2011Detailed report complementing MTN Group Integrated Report 31 December 2011

.beyondWelcome to possibility

MTN Group Limited Sustainability Report for the year ended 31 December 20111

Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

ContentsSustainability overview 12Group President and CEO’s message 2Delivering on our commitments 4Executive summary 5Sustainability and MTN’s business context 6Governance of sustainability 8Integrating sustainability 9Leadership accountability for sustainability 9Sustainability performance reporting 11Sustainable economic value 12Broadband 13Digital divide 14Smart solutions 17Investing in our employees 19Procurement transformation 21Eco-responsibility 22Energy and carbon management 23Network environmental impacts 26E-waste 27

Advancing sustainable societies 28Customer safety and cybersecurity 29Employee safety 30Anti-corruption 30Human rights 30Enterprise development 31MTN foundations 32Volunteering 33Annual sustainability statement 34Key statistics report 35GRI report 372012 – 2013 commitments 52Operational reports 54MTN South Africa 55MTN Nigeria 55MTN Iran 56MTN Ghana 56MTN Syria 57Appendix 58Report period and scope 59Stakeholders, report content and materiality 59Aligning reporting with international guidelines 59Where to find more information 59About MTN 60Glossary 62Awards and recognition 64

Navigation aid

www.mtn.com

Case study on www.mtn.com/sustainability

Youtube

www.cdproject.net

.beyondWelcome to possibility

MTN Group LimitedIntegrated Business Report – for the year ended 31 December 2011

MTN Group Limited Integrated Report for the year ended 31 December 2011, on www.mtn.com/investors

As an information and

telecommunications company

operating in developing economies

across Africa and the Middle East,

our sustainability journey is about

harnessing unique business

opportunities that address some

of the social and environmental

challenges in these markets.

Sustainability is at the core of our

business. It is not only about

managing risk, although this is a

significant aspect. It is also about

driving innovation, and developing

our business in a way that creates

lasting value for all our stakeholders,

inside and outside MTN.

➛ We have streamlined our sustainability programme into three areas that support our strategic business goals: sustainable economic value; eco-responsibility; and advancing sustainable societies.

For a few years now, we have

actively worked towards making

sustainability part of our core

business activities. By better

integrating economic,

environmental and social issues into

our product development, how we

run our network, and how we

manage the different needs of our

stakeholders, we are pleased to

report that we have achieved 6 of

our 16 objectives for 2011, while

work continues to progress well, and

on schedule on the further10.

Amongst our most significant

achievements for 2011 is that about

1% of our network is now fully powered by alternative energy

sources. Along with engineering

interventions and design solutions

to reduce energy consumption

across our networks and premises,

we are pleased that we reduced our

carbon emissions by over 15%, in

spite of a 7% increase in the number

of networks sites, and have achieved

UN Certified Emission Reduction

credits for some of these savings.

We know that telecommunications

infrastructure has an important role

to play in supporting economic

development in Africa and the

Middle East. We are constantly

working to increase ICT access and

affordability. Amongst others, MTN

Mobile Money – with more than

six million registered users in

12 countries – Opera Mini-browser

which is proving to reduce data

costs, and partnerships to roll out

solar-powered rural telephony

solutions and cellphone chargers

are helping increase revenues

or disposable incomes of our

customers in both urban and

rural areas. We also value our

partnerships which enable us to use

our technology to help transfer

Group President and CEO’s message on a sustainable MTN

2MTN Group Limited Sustainability Report for the year ended 31 December 2011

Sifiso Dabengwa Group president and CEO


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

Sustainablebusiness results ➛ JSE Socially Responsible Investment listing

➛ Position 123 in 2011 Newsweek International Green Rankings

Recognising that there are no quick

fixes when it comes to sustainability,

I am excited by the unique potential

that MTN holds – by virtue of our

footprint across emerging markets

– in contributing to the economic,

environmental and social

development and sustainability of

the countries in which we operate.

I invite you to review our progress in

this detailed MTN Group 2011

Sustainability Report, which

elaborates on information

presented in the MTN Group 2011

Integrated Business Report,

available on

and to share your views with us at

[email protected]

http://www.mtn.com/investors

Proof 8 – 30 MArCH 2012

Welcome to possibility

MTN Group Limited.Integrated Business Report – for the year ended 31 December 2011

.beyond

food aid, connect refugees and coordinate communities during disasters, and support the growth of agriculture and small enterprises across emerging

markets.

MTN is also actively pursuing innovation and product delivery to take advantage of the reality of converged ICT solutions, and

in 2011 invested over R80 million in

hosted data centre upgrades for

cloud computing services to other

businesses, made available air

quality and water monitoring smart

solutions, and piloted Africa’s first

Long Term Evolution network, while

continuing to increase available

continental broadband capacity

through most recent landings of the

WACS and EIG cables in several

countries.

We have also greatly improved our governance and management of sustainability within the business,

ensuring executive management of

the Group Sustainability function,

and aligning our reporting practices

to the Global Reporting Initiative. The

Group has recently implemented a

Social and Ethics Committee, a

sub-committee of the main board,

and ensures greater integration

between economic risk and

opportunity assessment and the

social and environmental impact of

the business, as recommended by

the King III Code of Corporate

Governance. We also developed two

executive key performance indicators

for sustainability, and met these.

We are under no illusion of the

significant challenges for both the mobile network operator industry and for the MTN Group, in the year ahead. These include

some of the very real socio-political

and human rights challenges faced

with operating in some emerging

countries in Africa and the Middle

East, and the challenges and

opportunities posed by social media

and the convergence of voice and

data technologies. We are also a

few months behind schedule in

finalising our energy and climate

strategy to reduce our dependence

on grid energy particularly highly

carbon-intense and unstable

electricity grids and diesel power.

We will continue to integrate social

and environmental revenue-

generating opportunities into our

innovation processes, and need to

ensure that business planning

maintains awareness of the key

performance indicators that are

most material to continue running

our business sustainably. We also

need to improve our internal

sustainability management systems,

processes and reporting resources

to allow more effective and timely

decision-making.

We know firsthand the particular

economic, social and environmental

challenges and opportunities in

emerging markets in Africa and the

Middle East, and as this is where we

operate, we actively work towards

creating and protecting value for our stakeholders in these

markets. We are confident that we

have the right people, skills and

attitude to take on these challenges.


Delivering on our commitments

In our last report, we committed to delivering a number of activities in 2011 and 2012. The table below informs on whether we have achieved our objectives.

Details about our activities to achieve these commitments may be found in the rest of this report.

2011/2012 commitment Progress

Governance and performance management• Complete training on Group stakeholder engagement model in all three MTN

regions (MENA, SEA and WECA) by Q3, 2011

✓

• Incorporate a new environmental sustainability performance indicator in executive

performance scorecard by Q2, 2011

✓

Sustainable economy • Launch machine to machine solution for air-quality monitoring by Q2, 2011 ✓

• Launch mi-life mobile insurance solutions in Ghana Q2, 2011 ✓

• Launch WACS terrestrial fibre-optic broadband cable in South Africa and Ghana Q1

and Q2, 2011

✓

• Extend access to MTN Mobile Money and mobile remittances ✓

• Roll out procurement transformation programme “Sourcing Together to Achieve

Results” (STAR) 2012

• Help close digital divide by implementing solar/hybrid-powered telephony

infrastructure in up to 850 rural villages in Nigeria

Eco-responsibility • Start climate management strategy development Q3, 2011 Needs attention

• Set relative baseline for GHG emissions Q4, 2011

• Continue investment in alternative and energy-efficient network sites

• Commence year 1 of three-year MTN SA e-waste pilot project Q2, 2011

• Identify criteria to select downstream e-waste recyclers Q3 – Q4 of 2011; represented

in two provinces in South Africa as part of e-waste pilot

Needs attention

• Apply for LEED certification for MTN South Africa 14th Avenue premises by May 2012

Sustainable societies • Conclude socioeconomic impact study by Q4, 2011 Needs attention

• Implement new corporate social investment (MTN Foundations) strategy by Q4, 2012

✓ Complete In progress


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

Executive summary

consumption to maintain or reduce costs.

Sustainable societies• We filter inappropriate and

unacceptable content such as illicit content and spam, and are introducing data loss prevention controls to ensure our customers can safely and securely use data communication services

• A Group Ethics and Social Committee has been set up to guide the company in addressing complicated issues related to, amongst others, human and civil rights

• 86% of our operations have been trained on the management of fraud and corruption, and we support complete freedom of association and non-discrimination in the workplace

• Although procurement is centralised, we continue to invest in small and emerging enterprises through targeted procurement and associated services in many of the African and Middle Eastern countries in which we operate, as enterprise development is an important contributor to Africa’s GDP

• Just over R128 million was spent on education, health, national development priorities, and arts and culture through MTN foundations in 2011, and 12 784 employee volunteers planted over 66 000 trees (and undertook other environmental activities) in support of the UN 2011 International Year of Forests.

2011 has proved to be an eventful year for sustainability within the countries in which MTN operates. The social, political and economic landscape in which MTN operates continues to develop at a rapid pace. We have seen regulators, legislators and other stakeholders demand increasing attention to environmental concerns across Africa in the build-up to COP 17.

Key challenges for the Group ranged from market maturity on some countries of operation, to social or political unrest and increasingly complex legislative requirements relating to acceptable quality of service standards while meeting the increasing cost of rolling out (higher-capacity) networks to meet demand for ICT services in emerging markets.

The MTN Group assesses its sustainable business progress across three areas: generating sustainable economic value, assuming eco-responsibility, and advancing growth of sustainable societies. This approach is based on the Forum for the Future’s Five Capitals model, which we use to help us to determine the environmental and social impact of our economic decisions, and vice versa.

We aim to economically maintain and grow our business in a way that is environmentally- and socially-responsible and responsive to the needs of the stakeholders in markets in which we operate across Africa and the Middle East. We improved

computing services, telemetrics and smart metering (air quality, water and energy) products, and more services to improve the mobility of office-bound workers

• We invested R265 million in skills development, and continue to ensure a safe, healthy, and diverse workplace environment for our employees

• We saved more than R3 billion through procurement efficiencies.

Eco-responsibility• The Group’s carbon footprint of

950 564 tonnes (carbon dioxide and equivalent) per annum is 15,7% lower than the previous year, due to an increased focus on energy efficiency and cost management across the business

• We are finalising our energy and climate strategy to reduce use of diesel and grid power (unless the grid is powered from lower-carbon sources such as hydro), mitigate energy insecurity and the risk of carbon taxes in some markets, reduce network and facilities’ operating costs, and reduce our greenhouse gas emissions

• We have made some progress on our partnership solution to address electronic and electrical waste, but have not fully met our 2011 objectives in this respect

• Although MTN may outsource some network sites to tower operating companies, we continue to track energy

integration and governance of sustainability within our business, met the two environmental KPIs (on energy and e-waste) set for Executive management, and worked towards integrated reporting in terms of the King III Code of Corporate Governance.

Sustainable economic value• We increased our network

footprint by 7%, and continued to roll out our US$230 million Y’ello Africa Fibre Ring, a submarine and terrestrial- based broadband offering of various cabling systems to increase capacity and affordability of ICT services across Africa and the Middle East

• We piloted the first African LTE network (in South Africa)

• We offered a number of new solutions and continued implementation of existing products and services to close the digital divide, including Opera Mini-browser, solar-powered handset recharging, MTN Mobile Money, MTN Pay-D and m-wallet financial transacting, and cash transfers in support of World Food Aid’s programmes, Refugee Crisis for connectivity and disaster management co-ordination, m-Health, m-Insurance and m-Agriculture services, amongst others

• The growing convergence between voice and data solutions provided us with opportunities to extend our ICT offering to include cloud


then moves on to the next set of

sustainability opportunities, risks or

challenges. This is again due to the

large number and complex nature

of issues any business must address.

➛ We see opportunity to continue doing business in a way that makes a meaningful economic, environmental and social difference in the markets in which we operate.

The MTN Group is no different. For

a few years now, we have worked

towards making sustainability part

of our core business activities. Using

the Forum for the Future’s Five

Capitals Model as indicated on the

sustainability section of our website,

we determined what the most

important impacts, risks and

opportunities are to MTN. We

establish what this may mean to our

stakeholders if we implement

solutions to challenges such as

energy and climate, e-waste, invest

in schools and universities which

help develop human capital, close

the digital divide, innovate and

Like any other business, our

operating context is shaped by

global and local issues in business

and society, our socio-economic

landscape, and environmental

pressures and commercial

opportunities. As an information

and telecommunications company

operating in developing economies

across Africa and the Middle East,

we continue to learn from the

experiences of our peers globally.

In many cases we set the trend,

given the unique opportunities and

challenges we face in the markets in

which we do business.

The social and economic landscape

in which MTN operates continues to

develop at a rapid pace. A Cisco

Networks study predicts that the

mobile network will break the

electricity barrier in more than four

major regions by 2015.

➛ In sub-Saharan Africa alone, more people will have more mobile network access than access to domestic electricity.

Global ICT by 2015 • 90% of people with mobile network access • 200 000 text messages sent every second • 5,6 billion devices connected to mobile networks • 87% mobile traffic from smartphones and portable devices•ICT in Africa in 2011 • 41% mobile penetration• 3,79/100 active mobile broadband subscribers per inhabitant• 2nd most connected region (mobile subscriptions) worldwide

(Asia-Pacific first)• 70% decrease in wholesale broadband prices• 300% increase in Sub-Saharan African bandwidth supply

(– AfricaNext Research)

Sustainability and MTN’s business context

MTN operates under licence from

regulatory authorities. Pressure to

keep communication prices down

while continuing to invest in new

infrastructure is an ongoing feature

of business for all network operators.

Globally and within MTN’s markets,

the Arab Spring and social and

political developments in a number

of MTN’s markets indicate the

changing perspective on freedom

of expression and the right to

communication and access to

information including the internet.

Governments in both developing

and developed countries are placing

further curbs on information privacy

and security.

Increasing guidelines, laws and

requirements around energy use,

greenhouse gas emissions, water

and the impact of environments on

society, especially poor and

vulnerable communities with little

economic resource to cope with the

consequences of climate change,

pose complex challenges and

require integrated partnerships.

Most businesses report that being

sustainable “is a journey, not a

destination”. This means that

ultimately the business that

prioritises the top sustainability

issues is able to address, sets about

implementing solutions to these

matters as part of its growth, and


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

MTN

's su

stainability priorities

Why

MTN

car

es a

bout s

ustainability

business. We work to integrate

economic, environmental and

social issues into our product

development, how we run our

network, and how we manage

the different needs of our

people, customers, investors

and the communities in which

we operate. Through this

commitment, we aim to

protect and create value for

our stakeholders.

develop enterprises in a socially-

responsible manner.

Our position as an ICT service provider

in developing economies shapes our

sustainability strategy. We know

firsthand the particular economic,

social and environmental challenges

and opportunities in emerging

markets in Africa and the Middle East.

For the MTN Group, sustainability is

about the way we conduct our core

To support our sustainability

vision of protecting and creating

economic value for MTN through

responsible environmental and

social practices, we have linked our

sustainability initiatives to MTN's

Group-wide goals. These are set out

in the Group's Integrated Report.





.beyond

We spent time assessing what our

main environmental, social and

sustainability economic issues are,

what poses the greatest threats and

opportunities to our business, and

what we are most able to influence

positively through our actions. We

ultimately narrowed our sustainability

focus down to three big goals and

are now working to implement

solutions that can address these.

The sustainability projects that we

implement are all designed to

support at least one of MTN’s high

level goals of focusing on ICT

convergence, costs, market

leadership and the customer

experience. Our sustainability goals

are complemented by high-level

key performance indicators, and in

year 2012, stricter, quantifiable and

time-bound targets will be set for

our energy and e-waste projects.

• We operate in some of the most

environmentally and economically vulnerable countries in the world, and our

customers are drawn from these markets•Affordable and widespread access to

telecommunication and information services is a catalyst to socio-economic development

• Consumers, communities, and governments expect businesses to operate in a way that reduces harm and negative impacts and helps build socially, economically and environmentally sustainable communities

• We know that integrating sustainability and core business activities can help save costs over

the short and longer term and help us earn revenue from new applications of

ICT services.

• Energy cost, carbon and climate

management across networks

• E-Waste• Integrated ICT to help other

businesses, customers and communities manage

environmental and socio-economic

issues


Governance of sustainabilityOur governance structures reflect the importance we attach to the fact that business can no longer separate

environmental and social matters from traditional economic matters.


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

Sust

aina

bilit

y re

porting areas

• Creating

sustainable

economic value

• Assuming eco-responsibility

• Advancing sustainable

societies

Integrating sustainability In line with the recommendations

of the King III Code on Governance

Principles for South Africa (King III),

we published our first integrated

report covering the financial year

beginning on 1 January 2010 and

ending on 31 December 2010.

During 2011, MTN undertook a

group-wide strategic review as part

of our internal integration drive,

embedding prioritised material

sustainability issues such as energy

efficiency into our operations.

This year, as an outcome of our

integrated strategy review, we have

refocused our sustainability

strategy, initiatives and report into

three streamlined focus areas that

support our business strategy.

MTN’s governance structures to ensure greater integration between sustainability imperatives and core business activities continue to evolve.

2011 highlights:➛ improved

integration in business planning

➛ risk identification and reporting during business planning

➛ sustainability KPls for senior leadership

Governance structure: social and ethics committee





.beyond

Leadership accountability for sustainabilityIn 2011, management of the Group

Corporate Affairs function was

moved to the office of Group

Executive for Human Resources

(now the Group Chief Human

Resources and Corporate Affairs

Officer). The structure within which

sustainability is governed within

MTN is indicated on the next page.

Part of the governance structure

supporting integration of social

and environmental concerns into

our operations is the development

of a social and ethics committee.

The terms of reference for the

committee have been set and the

first meeting took place early in

2012.


Governance of sustainability continued

Group board

Boardcommittees

*Risk management,

compliance and corporate

governance

Nominations Group tender *Social andethics

Remunerationand human

resources*Executive*Audit

DepartmentsBusiness

RiskManagement

Finance

*Human Resources

andCorporate Affairs

Commercial TechnicalStrategy and Mergers and Acquisitions

*Executive Corporate Affairs

*Stakeholder relations

Corporate Communications

*Group Sustainability

Note:*The relationship

between Group board committees

and Group Sustainability is

illustrated in grey blocks alongside.


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

Sustainability performance reportingWe track and report our sustainability performance on a regular basis, as indicated in the table below.

Reporting frequency

To Group executive

committee

To Group business

Risk management

committee*

To Group audit

committee*

To Carbon disclosure

project

To JSE (Socially

Responsible Index)

To external stakeholders

(organisations, media,

community, employees,

suppliers, and authorities)

To ethical and

sustainable investors

Monthly •

Quarterly •

Annually • • • •

Ad hoc/ongoing •

*Sub-committee of Group board

Key performance indicators (KPIs) related to energy efficiency for cost and

carbon efficiency quantification and investment in electronic waste

management were set as one of the performance measures for the Group

Chief Human Resources and Corporate Affairs Officer. The KPIs were met. The

pertinent sections of this report provide more details about the results of

activities to achieve these KPIs. In 2012, additional KPIs for sustainability will

be defined and again included in the Group Executive’s performance

scorecard.


It’s about how our products and services, partnerships and investment in employees generate economic value

to MTN and our stakeholders in a socially- and environmentally -responsible way.

Sustainable economic value


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

BroadbandThe ITU identifies broadband as a

“powerful potential accelerator

towards the Millennium Development

Goals (MDGs)”, given the role of

technology and communications in

reshaping people’s lives economically

and socially.

Local operators' ICT spending aided

the economy through increased

investments into fixed capital items

during the third quarter of the year,

according to the South African

Reserve Bank, Quarter 3, 2011.

We are investing in flexible, scalable

and profitable data technology

solutions and next generation

networks to support the growth of

data services as a key contributor

to revenue.

➛ MTN South Africa is the first continental cellphone operator to launch the Long Term Evolution (LTE) pilot project in 2011, core to our vision of using mobile technology to bridge Africa’s digital divide.

With data revenues representing the

next wave of growth for operators,

MTN has invested more than

US$230 million in fibre-optic cables

since 2009. Our Y’ello Africa Fibre

Ring consists of the East African

Innovation is about more than the

products and services we offer. It’s

about the way in which we do

business. Our innovation focus is not

only aimed at economic sustainability:

we are using converged ICT services

to develop scalable economic

solutions to address social and

environmental challenges.

We strive to generate economic value to MTN and to our stakeholders, in a way that is responsive to socio-economic and environmental concerns.

Voice

Computers,servers, tablets,

laptops

Video

SMS Broad-casting

Banking

InternetSocial media

Info

rmat

ion

Tech

nolo

gy a

nd C

omm

unication Convergence


Low-cost handsets

A basic element of closing the

digital divide is ensuring affordable

access to mobile

telecommunications. Three years

ago, MTN introduced the first

low-cost handset in our markets,

with a US$13 cellphone in Zambia.

We know that reducing the cost of

handset acquisition improves

mobile penetration rates across our

markets. We are therefore looking at

introducing an entry-level GPRS

handset at a price of US$18 in all our

markets in 2012. Traditional low-cost

handsets have historically been used

for voice and SMS services. Our new

strategy aims to enable low-income

customers to utilise data services

such as internet, emails, and

value-added services such as

m-Health, MTN Mobile Money etc.

Affordable recharging

Equally important is the cost to

users to recharge their handsets. In

emerging economies, where large

parts of the population live on

between US$1 – 2 per day, any

solution that reduces or eliminates

battery charging costs (or spreads

Sustainable economic value continued

Main System, South Atlantic 3 South

Africa Far East (SAT-3/SAFE), East

Africa Submarine System, Europe

India Gateway and West Africa Cable

System.

Our experience shows that high

capacity broadband connectivity

reduces costs and the limitations

associated with satellite

connectivity. It also increases the

feasibility of providing converged

MTN’s Y’ello Africa Fibre Ring: http://www.mtn.com/

sustainability

bypass gaps in infrastructure and

services access e.g. lack of access to

banks or utility services.

MTN is aware of the potential of

mobile phones to transform

emerging markets. We offer

ICT-based products and value-

adding services in the health,

agriculture, insurance, commerce

and entertainment sectors. Many

of these services are offered in

partnership with other

organisations, allowing us to jointly

and rapidly deliver solutions that

benefit our communities both

economically and socially, and

making a real difference to the

communities in which we operate.

➛ Operators can expect to see the next billion mobile connections to come from rural areas in emerging markets, according to analyst Ovum.

IT services across Africa and the

Middle East, enables new retail

services such as mobile internet,

improves bandwidth connectivity

and quality, and reduces operating

costs for mobile operators,

wholesalers and retailers. In 2010,

we found that our investment in

broadband connectivity stimulated

a 400% increase in capacity utilised

in southern and Eastern Africa,

indicating a pent-up demand for

affordable connectivity. We

continue to roll out high capacity

networks across Africa, and plan to

double our 3G sites between 2012

and 2014 in South Africa alone. We

continued to extend broadband

connectivity through further

submarine and terrestrial extension

of our WACS and EIG cables at

further sites in 2011.

Digital divideThe digital divide is the gap in

technology access between groups

defined by income, gender or

education. Mobile

telecommunications is used to


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

Our operations offer the following solutions to close digital divide

Mobile Money

Benin LiberiaBotswana NigeriaCameroon RwandaCôte d'Ivoire SwazilandGhana UgandaGuinea-Bissau Zambia

m-Health

Afghanistan LiberiaGhana UgandaIran

m-Insurance

Botswana Ghana

m-Agriculture

Ghana

Google SMS for Business, Farmers, Health and Trading

Uganda

Refugees United

Uganda

Village Phone

Nigeria Uganda

MTN-UN partnership

Côte d'Ivoire SyriaGhana

MTN Zone

Benin RwandaCameroon South AfricaCôte d'Ivoire SwazilandGhana UgandaNigeria Zambia

Opera Mini Browser

Afghanistan NigeriaBenin Republic of CongoCameroon RwandaCôte d'Ivoire South AfricaCyprus SudanGhana UgandaLiberia Zambia


countries in which we operate.

MTN Mobile Money is a

fundamental tool that has helped

us close the financial divide, by

allowing customers to perform a

range of basic financial transactions

using their cellphones. This includes

financial remittances, bill payments,

retail payments, cash withdrawals,

airtime purchases and bulk

payments, e.g. for employee salaries.

In some operations, e.g. Uganda,

MTN Mobile Money is used to pay

for utilities such as water.

➛ Global mobile payment users will exceed 141 million in 2012. Payments of US$86 billion (76% up from 2011’s US$48,9 billion) will be made – Gartner Group.

MTN Mobile Money is now available

in 12 countries with six million

registered users by the end of 2011.

the cost across multiple devices)

increases the affordability of

communications. According to the

GSMA, on average, it costs a user

US$2,5 to recharge a cellphone.

We will also explore the feasibility of

low-cost solar handsets to help

address the challenge of the lack of

power grid in rural areas in some of

our operations such as Uganda,

Zambia, Sudan, Cote d’Ivoire, Benin

and Cameroon.

In Uganda, MTN EasyTalk phones are

used to provide funds for UN World

Food Programme (UN WFP)

beneficiaries. We have piloted a

solar-powered solution to recharge

handsets, and provide energy for

radios and clean lighting, and

strong demand for this solution is

evidenced by the fact that end-users

could earn up to US$60 a month in

income and savings monthly.

In Cote d’Ivoire, we are also working

with the UN WFP, trialling a mobile

project to deliver food credit. In

response to post-election crisis, we

Case study: http://www.mtn.com/

sustainability

Connecting refugees

MTN Uganda’s Refugees United

Project is an innovative service that

assists refugees and displaced

individuals in finding their families

and loved ones and has proved

especially valuable in supporting

refugees fleeing Libya as a result of

the political environment, and the

National Disaster Management

Organisation during regional

flooding crisis; while the Village

Phone solution, now in its seventh

year, continues to extend rural

telephony services via mainly

female-owned micro-enterprises.

Google SMS information service for

businesses, farmers, health and

trading needs continues to extend

access to information services to

previously excluded markets.

MTN Mobile Money

It is estimated that 2,7 billion people

worldwide, mainly in developing

countries, do not have access to

banking services. The unbanked

market represents a large proportion

of our customer base in many of our

markets. Even customers operating

bank accounts may struggle to

access cash and physical banking

infrastructure easily in many

facilitated cash transfers using

mobile handsets to 54 000 people

living in poor districts. Beneficiaries

receiving MTN SIM cards that

enabled them to receive their

transfers. Transfers were complete

at the end of October 2011 (total

disbursements: US$1,6 million).

Mobile health

MTN m-Health allows customers to

access medical advice from nurses

or doctors to our customers via their

mobile phones. Lifestyle-oriented

text messages and health tips, as

well as the ability to locate clinics,

assistance to expecting mothers

during pregnancy and childbirth,

child healthcare, HIV/Aids

information, access to health

dictionaries and many more services

are available not only to MTN

customers, but also to medical

personnel.

Affordable mobile insurance

MTN’s m-Insurance is a low-cost

funeral insurance package that

provides customers with funeral

cover for themselves and family

members, allowing customers to

also pay monthly insurance

premiums using their cellphones.



Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

Smart solutionsMobile applications

MTN’s mobile applications (apps)

offer solutions for working, learning,

living and having fun.

MTN Mobile Money registered users (10 largest markets)

We aim to offer MTN Mobile Money

and mobile remittances in three

countries – Afghanistan, Nigeria and

Yemen – by December 2012.

MTN Mobile Money has been

extended to Pay-D, a solution that

allows customers to make secure

online debit card purchases. With

cellphones now being turned into

secure encrypted point-of-sale

terminals, our customers do not

need to have credit cards. They also

need not have to top up their

accounts beforehand and can now

purchase items online with funds in

Data revenue analysis

■ Uganda (2 408 000) ■ Rwanda (380 000) ■ Swaziland (50 000)■ Zambia (157 132)■ Côte d’Ivoire (888 000)■ Ghana (1 973 000)■ Cameroon (96 000)■ Guinea-Bissau (64 000)■ Benin (161 000)■ Liberia (47 000)

➛ Anecdotal feedback from users indicate savings of up to 85% of data costs since they have started using the browser.

their accounts. We also launched

mobile wallet (m-wallet) services in

Zambia. We are the first operator to

offer Ericsson Converged Wallet

services which integrates prepaid

charging and mobile financial

solutions for our customers in South

and East Africa.

Opera: Faster, cheaper web browsingNoting that Africa had the lowest

volume of internet traffic in the

world in 2010, we looked for ways

to address challenges that were

preventing people on the continent

from accessing the internet. MTN’s

Opera Mini browser was developed

to provide six times faster internet

browsing compared to regular

browsers, by enabling data

compression. In addition to

improved download speeds,

customers save money, and enjoy

greater web usability. It is accessible

from more than 3 000 types of

phones including low-end handsets.

Customers can view almost nine

times as much content on their

phones as with their existing

browser, without paying more.

So popular is this service that we

have seen an uptake of 1 665% in

the use of this browser across 14 of

our 21 markets.

Server Farms:Data Centres Proxies

Web Servers

PCs, monitors and telecoms devices

Telecoms Infrastructure

Cloud computing


We launched our mobile apps store

for cellular, tablet and other mobile

devices in 2011 and challenged

developers to create innovative

apps inspired by Africa and the

Middle East.

Their creations can deal with any

facet of life, from solving some of

the regions' most pressing

challenges, to lifestyle and

entertainment, and social

networking. Given our footprint

across these regions, we believe we

will play an invaluable role in the

apps ecosystem in these regions

and provide a much-needed

distribution channel for the regions’

developer community. We are

creating a platform that will be

made available to the operations to

guide local developers on the

creation of new applications. This

will improve interaction between an

operation and the developers and

more relevant and applicable

applications will be developed to

add value in 2012.

http://www.mtnplay.co.za

Machine-to-Machine (M2M)

Communication uses the cellular

technology to link remotely located

or moving devices, providing data

on which to make informed

business decisions. 2011 was the

year MTN increased its complement

of telemetry and smart solutions.

In addition to MTN Fleet Monitoring

and MTN Mobility smart electricity

metering solutions (which also help

reduce fuel, transport and energy

costs and carbon emissions), we

now offer air quality and water

monitoring solutions. A sensor or

automated reader monitors air

quality levels, detecting any

abnormalities. An SMS and email

alarm is sent through a network

(wired or wireless) to an application

that translates this into meaningful

information for industries, and

municipal and other authorities. This

helps to reduce response times,

damage or loss to assets, related

productivity and revenue losses,

pre-empting evacuations and

equipment failure, preventing

downtime, and enabling easier

compliance with air quality

legislation. This solution is already in

use by an MTN mining sector client.

MTN Water Monitoring is a solution

that monitors business’ water usage.

Using a water meter’s standard

pulse outputs, real time reporting

on flow rates helps users develop

patterns of consumption. Any

variations (e.g. leakages causing

increased water use, or dam water

levels exceeding pre-set limits)

trigger alarms with escalation via

SMS and email, helping address

problems, and reducing water

wastage.

➛ “ICT-enabled energy efficiency translates into cost savings of approximately €600 billion via smart motor systems, logistics, buildings and grids” – SMART 2020.

MTN Business for Clouds

Cloud computing was ranked

second in Gartner’s list of top ten

technology priorities for 2010 (in

2009 it was in 16th place). Cloud

computing is a solution to

outsourcing technology via the use

of the internet. This has proved to

reduce operational costs to all

businesses from SMEs to

multinationals, by positively

impacting companies’ IT

performance and effectiveness.

MTN Business’ R80 million

infrastructure systems and

expansion upgrade is one of the

largest in the southern hemisphere,

and will ensure that our customers

can take full advantage of

innovations such as cloud

computing, server virtualisation and

converged ICT solutions. MTN

Business aims to make its Gallo

Manor Johannesburg data centre

the main hosting and cloud services

site nationally; it already hosts 30%

of national internet content. The

centre is built according to Uptime

Institute Telecommunications

Industry Association Standard 942.

It serves as a technological ‘launch

pad’ for our value-added services to

ensure customers can scale their

business technology innovation as

necessary – all while benefiting from

improved cost efficiencies, greener



Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

➛ MTN Afghanistan’s consultative process to creating a multi-cultural operation has resulted in a workplace comprising colleagues from various local regions and backgrounds, working side by side with Canadian, Nigerian, Lebanese, Filipino, Indian, Pakistani, British and Bolivian colleagues.

functionality and unsurpassed

service and maintenance excellence.

In Kenya, MTN offers cloud-based

data backup services as a solution to

frequent power cuts nationally.

MTN Everywhere you work and

travel

Our Enterprise Digital Assistant

enables corporate and industrial

customers to improve energy

efficiency (other benefits include

reliability of their business

processes). MTN Fleet management

is an application that allows

companies to do real time vehicle

tracking, monitor fuel cap and

ignition access, and lock down

vehicles. Smart Office Management

allows clients to track work flows of

mobile workers, while Mobile

Surveys automate data collection for

survey efficiency. Uni-presence

eliminates the need for desk phones

for office-bound employees.

MTN Business cloud computing:

http://www.youtube.com/watch?v=cXAKt262YM4

Investing in our employeesMTN’s 24 252 (26 055 in 2010)

employees across 21 operations are

integral to our business evolution

and our long-term sustainability.

Number of employeesNumber of employees

20112010

26 0

55

24 2

52

In this report, our definition of

employees refers to permanent staff

and expatriates, contractors and

consultants are excluded. We have

therefore amended the 2010

reported employee numbers to

reflect this alignment in 2011.

Employees’ turnover decreased to

7,1% (9,6% in 2010).

Celebrating diversity

We celebrate the fact that more

than 55 nationalities make up our

diverse human resource base, and

wish we knew how many additional

languages are spoken by our

employees, complementing our five

official business languages. We are

proud of the fact that even in

culturally sensitive environments,

expatriate staff from other emerging

and developed economies work

side by side with local colleagues,

and we ensure that everyone has

equal access to knowledge and skills

development opportunities. Our

employment equity and diversity

policies disallow prejudice on the

basis of gender, ethnic origin,

marital status, religion, age and

physical handicap.



development programmes, targeted

at different levels of current and

high potential future leaders are

offered to assist people to become

more effective at leading the

business towards high performance.

These include the Global

Advancement Programme (GAP),

Leaders Excellence at Dealing with

People (LEAP), Future Leadership

Investment Growing High Potential

Talent (FLIGHT) and reach

Supervisory Development

Programme (SDP).

All MTN operations have dedicated

learning and development resources

and infrastructure to assist with

investing in talent activities for staff.

We operate three regional learning

centres (in South Africa, Dubai and

Ghana) to offer learning and

development services to all 21 of

our operating units in Africa and the

Middle East, through the MTN

Academy.

We allocated 4% of our overall

payroll to investing in employee

talent, learning and development.

In 2011 we invested R265 235 million

(up 6% from 2010). However, due

to smaller operating margins and

geopolitical events in a number of

countries in which we operate, our

ability to invest in training and

development was affected. To

determine our actual training

investment compared to supporting

costs such as programme costs,

training stationery and other

material requires us to address how

we define and capture our training

http://www.mtnacademy.com

costs, and we are working on a

project in this respect.

Y’ello Stars

The MTN Y’ello Stars programme is

part of MTN’s broader recognition

framework aimed at motivating and

engaging employees. Due to the

nature of our footprint and the

inclusivity of the programme; the

nomination process for 2011 is in

progress; the winners will be

announced during the 2013

reporting period.

As part of MTN Nigeria’s (Thank You Nigeria) campaign to mark its tenth anniversary, MTNers who were pioneers of MTN Nigeria were rewarded in a truly special way: 10 pioneer employees were chosen via a raffle draw to become instant millionaires (1 million naira equivalent to R49 747,23 (US$6165,23).

Investing in our talent

In the dynamic and rapidly evolving

converged ICT sector in which we

operate, we maintain our focus on

the importance of investing in our

talent. Our leadership talent

management strategy ensures that

a strong pipeline of leadership at all

levels is developed for today and for

the future. Talent reviews take place

at the executive level in the form of

the Strategic Talent Investment

Board (STIB), chaired by the

Group CEO. Various leadership


Sust

aina

bilit

y ov

ervi

ewSu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-

resp

onsib

ility

Procurement transformationWe are working towards building a

new way of procurement, which will

impact our employees, systems,

procedures, relationships with

suppliers and customers. Launched

early in 2011, our Sourcing Together

to Achieve Results (STAR) 2012

programme is reviewing supply

chain processes, procedures and

skills. Already 112 employees have

been trained in skills related to

procurement such as The Build,

Understand, Yield measures, Execute

and Review (BUYER) process,

negotiation skills, identification of

sources of waste and analytical tools.

We are working to standardise all

procurement activities across the

business, thereby enabling

operational efficiencies and

sustainable cost reductions in future.

Although we have already

documented benefits in terms of

seven key performance indicators

(savings, procure-to-pay cycle time,

reach, working capital improvement,

compliance, people development

and user satisfaction), we are not

able to report quantifiable results to

date as we are improving our

reporting systems, and will only be

implementing our KPIs for each

operation over the course of 2012.

We have acknowledged upfront that

the complexity of the processes,

systems and scale of our business

makes it challenging to roll out such

a wide-ranging programme Group

wide, but hope to complete rollout

in 2013.

In 2011, we achieved the savings of US$394 million which is 48% higher than the savings target of US$206 million for the same period. These savings were mainly achieved from negotiations with network equipment suppliers and reviewing network equipment procurement processes.


Eco- responsibilityOur customers live in emerging countries that are most

vulnerable to the effects of climate change. We are therefore concerned about the state of the environment.

MTN South Africa's 2 MW Tri-Generation test and data centre.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

consumption and carbon

measurement assessment, in order to

have suitable data to set baselines

and reduction targets. We have also

made some progress in

understanding the e-waste recycling

landscape better, to understand what

happens to electronic waste when it

is handed over for recycling. Energy

and carbon-related key performance

indicators were set for some of our

business executives, and we are

pleased to have met these.

Energy and carbon management Carbon disclosure

Within our operations, we know that

our greatest consumers of energy,

which are our radio access networks,

switches and data centres, drive our

business costs and carbon emissions.

In 2011, we again extended the

number of base transceiver stations

(BTS) and switches in particular, to

improve the completeness of our

Scope 1 and Scope 2 energy and

carbon calculations. We also improved

data reporting with respect to Scope

3 travel emissions. We did this to have

See MTN’s environmental efforts:

http://www.youtube.com/watch?v=OrNwzddfag

a materially-representative dataset

from which to develop a Group

relative energy consumption and

carbon emissions baseline.

Our carbon footprint for 2011 is

950 564 tonnes (down 15,7% from

2010).

Carbon footprint between 2009 and 2011

201120102009

743

646

950

5671

126

894

565

861

378

869

4 414

4 379

6 531

536

541

407

492

280

246

281

201

111,

9

Scope 3 (indirect) emissionsScope 2 (indirect) emissionsScope 1 (direct) emissions

However, we note that MTN Zambia

has not been included in the latest

energy and carbon assessment.

With less than 8% contribution to

overall group carbon footprint, the

exclusion is not considered material.

MTN Group detailed Carbon Disclosure Project report: http://www.cdproject.net

The UN Inter-governmental Panel on Climate Change Conference of Parties (COP) 17 negotiation process held in Durban, South Africa towards the end of 2011 again confirmed that the impacts of climate change will fall disproportionately upon developing countries and the poor people within all countries.

In 2010, we examined our business

and identified our key environmental

impacts, and what we needed to do

to make a positive impact. We know

that the nature of climate change

requires long-term solution

implementation, but that short- and

medium-term initiatives, and working

in partnership, can also make a

significant difference. We try to

address our greatest environmental

impacts in a consistent,

programmatic manner. We have

increased the scope of our energy

The reduction is achieved in spite of

the following:

• A more inclusive and materially-

representative dataset of energy

consumption and carbon

emissions of BTS sites, switches,

hubs, data centres and office

buildings

• A 7,4% increase in network sites

implemented.

The reason for the carbon reduction

is our concerted effort to reduce

energy use, and our increasing

switch to alternative energy sources.

• 30 employees across 11 operations trained on energy use and carbon footprinting

• 9 operations representing 77% of MTN by subscriber number assessed (Cameroon, Ghana, Iran, Nigeria, South Africa including MTN Group head office, MTN Business, Swaziland, Syria and Uganda).


• UseICTtohelpotherindustriesandcompaniesreducetheirenergyconsumptionthroughdematerialisation,therebygeneratingrevenuesforMTN

• Wecansaveoncarbontaxpenaltiesandaccessnewsourcesofinvestmentandinnovativetechnology

• Wecansaveoperatingcostsinourownbusiness,andimproveourenergysecurityposition

Eco-responsibility continued

➛ In total, ICTs could deliver approximately 7,8 GtCO2e of emissions savings in 2020. In economic terms, ICT-enabled energy efficiency translates into approximately €600 billion of cost savings to industries via Smart motor systems, logistics, buildings and grids. SMART 2020: Enabling the low carbon economy in the information age. For more information about MTN’s revenue-generating environmentally-responsible innovations, please read our Sustainable Economic Value section.

Energy and climate strategy

We are a few months behind

schedule in finalising our energy

consumption and carbon emissions

baseline. This baseline will inform

our development of targets for

reducing energy use, energy costs

and carbon emissions. We hope to

be able to set targets within 2012,

for first reporting during the course

of 2013. These targets will be

included in the Group energy and

climate strategy, the process for

which has already started with a

detailed network review of our MTN

operations in South Africa and

Nigeria (in early 2012).

Efficient and green energy

We continued to drive energy

efficiency through engineering

improvements and investments in

alternative energy sites across our

operations. This helps us meet

business cost efficiency and

continuity objectives in a more

carbon-friendly manner. We have

also integrated our carbon

assessment with the GSMA Mobile

Energy Efficiency project, to

determine our energy intensity in

relation to our peers and

competitors. This information will

be used to inform the solutions

developed as part of our energy

and climate strategy.

While approximately 1% of our

network is now fully alternatively

powered, engineering interventions

without investment in alternative

energy have helped us further

reduce our carbon emissions. These

include network modernisation,

increased use of free cooling and

deep-cycle batteries, smart

metering, energy use, battery and

• Increasingenergycostsand uncertainties

• Infrastructuralperformanceandsecurityriskduetoincreasedtemperatureandfloodingrisks

• Potentialcarbontaxes

Top three carbon and climate-related opportunities and

risks to MTN

MTN supports the UN International Year of Sustainable Energy for all.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

weather monitoring, site sharing,

rapid site deployment techniques

(reducing transport and concrete-

based embedded emissions) and

other power-saving features of radio

equipment.

To improve data centre energy

efficiency, we have adopted the

Green Grid standard for constant

monitoring of Power Usage

Effectiveness (PUE)) metrics to make

energy efficiency improvements.

We have also adopted the European

Union Code of Conduct for Data

Centre for building and power

efficiency. Our operating countries

are clustered into regional shared

service hubs, and we have

consolidated infrastructure to save

space and reduce cooling (and other)

costs, which could have the benefit

of improved energy efficiencies.

Although our biggest area of energy

costs and carbon emissions’ savings is

to reduce energy use by our network

and technology infrastructure and

associated buildings, our office

buildings are also targeted in our

plans to reduce carbon emissions.

Case study MTN SA's UN CER-approved

tri-generation sitewww.mtn.com/sustainability

MTN's Low Carbon Network


Eco-responsibility continued

MTN South Africa has made

excellent progress in this respect,

and is on track to achieve at a

minimum a Silver level Leadership

in Energy and Environmental Design

status early in 2012.

We worked more closely with our

vendors to implement energy

efficiency solutions powering

our network and data centre

technologies, and to further support

our rollout of alternative energy sites

especially in rural and remote areas.

For example, in Nigeria we have

partnered with one of our vendors

to roll out solar and hybrid powered

network sites for telecommunication

services to 850 villages by the end of

2012. So far, we have implemented

these sites in 308 villages.

Infrastructure sharing and

outsourcing

We also continued with our strategic

initiative of operational efficiency

Case study MTN’s Green Head Office

www.mtn.com/sustainability

through network infrastructure

sharing (or site co-location,

which involves sharing network

infrastructure with competitors)

and outsourcing. Depending on

the nature and type of shared

infrastructure (site, mast, core

network or radio access), we expect

a decrease of operational costs in

the range of 50% to 60%. This is in

addition to CAPEx reduction, risk

sharing, and more rapid consumer

access to telecommunications,

especially in rural and under-

serviced areas. An environmental

benefit of a co-location strategy is

the reduction of overall

environmental impact of national

communications infrastructure

through reduced energy

requirements for cooling and

reduced infrastructure proliferation

and network buildup.

In 2010, we launched our network

outsourcing strategy with the

announcement of our MTN

Ghana-American Tower Company

(ATC) TowerCo Ghana partnership,

outsourcing 1 860 of our sites. In

2011, we followed this with another

1 000 towers outsourced in Uganda.

While outsourcing network sites to

management companies has a

number of economic and

environmental benefits for

operators, energy costs are usually

passed directly to the network

operator, and we therefore will

continue to account for the energy

and carbon intensity of any of our

network sites that are outsourced.

Network environmental impactsOur Base Station Toolkit specifies

approved and trial technologies to

reduce total site costs including

building materials and equipment,

services and energy requirements,

and reduction of carbon emissions.

Our Group’s Environmental

Management Policy is supported

by Environmental Management

Systems (EMS) in a number of

operations, some of which are based

on ISO 14001. Network

infrastructural impacts addressed by

our EMS include essential

environmental processes and

procedures to manage site

construction and infrastructure

implementation, waste

minimisation, prevention of

pollution, and management of land,

unique flora, forests, water and

wildlife. Due to the complexity of

site build projects, we require our

project managers to ensure

contractors (especially new

contractors) are trained on project

specifics relating to environmental

requirements during site pre-

construction and construction

phases. Our submarine and

terrestrial optic-fibre broadband

implementations are subject to

independent environmental and

local community impact

assessments. In the case of

broadband cabling, all infrastructure

development is signed off by local

government and regulatory

stakeholders, and our operating

licences are subject to

environmental impact assessment

requirements.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

E-wasteIn 2010, we entered into discussions

with Gesellschaft für Internationale

Zusammenarbeit (GIZ) GmbH, to

partner on a three-year MTN South

Africa e-waste pilot project. This

partnership formally commenced in

the second quarter of 2011. Our

mutual objective is to address the

problem of increasing global

electronic and electrical ICT-related

waste by forming a bridge between

the generators of e-waste

(consumers) and organisations with

capacity to facilitate responsible

management and disposal and

of 2011 by contracting SME e-waste

handlers to complement our existing

e-waste partner services, and to install

a number of collection points in

publicly-accessible venues. A number

of project logistic matters delayed

commencement by six months,

impacting 2011 targeted spend and

implementation activities. However,

we were able to undertake both an

MTN e-waste and South African

downstream recycling situational

analysis, one of our targeted activities.

We decided that it is important for us

to understand fully the downstream

recycling process, market players and

nature of processing in this very

fragmented industry. The results of

this research are helping the project

steering committee understand the

long-term viability and sustainable

impact of our decisions. This will

further ensure that to the best of our

ability, we do not add to any

problems of irresponsible

downstream e-waste management.

We are still confident that we are on

track to meet our overall project

objectives by 2014.

implementation of a pilot project in

South Africa. The nature of this

project is collaborative and open to

our customers, the general public

and even our suppliers and

competitors. Once we have

successfully implemented this

project, we hope to roll it out to a

number of our operations.

We planned to start implementation

in two major cities in South Africa

commencing in the second quarter

e-waste partnership factsheetwww.mtn.com/sustainability


Advancing sustainable

societiesSupporting the growth of sustainable societies supports

our strategic aim to contribute to socio-economic development in emerging markets where we operate.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Our focus on sustainable society keeps us connected to community concerns and ICT needs.

Customer safety and cybersecurityEnsuring that our customers can

be confident that their use of

telecommunication services is as

safe as can be is of utmost

importance to us.

Inappropriate content

The Internet Watch Foundation (IWF)

publishes lists of websites that are

hosting illicit content and enable

online child abuse. The GSM

Association, of which the MTN Group

is a member, supports this global

initiative to prevent access to such

sites and to combat online child

abuse. MTN maintains software

programmes to filter out such sites,

thereby blocking access and

ensuring greater protection for

consumers. Various MTN operations

have filtering solutions in place,

reviewing SMS, MMS and WAP

content based on in-country legal

and regulatory requirements.

Content relates to illicit material, and

in some cases, also extends to SPAM

control from partners.

Cybersecurity

In addition to current controls

preventing unauthorised access

to customer data, we are also

introducing technologies such as

Data Loss Prevention (DLP) which

institutes policy controls to prevent

data from being leaked, by tracking,

enforcing and securing the data.

• the International Commission on

Non-Ionizing Radiation

Protection (ICNIRP);

• the World Health Organization

(WHO);

• the Institute of Electrical and

Electronics Engineers (IEEE), the

National Radiological Protection

Board (NRPB (UK)) and European

Union (EU) standards.

MTN distributes handsets directly in

South Africa and Nigeria. In both

countries, vendors are required to

provide electrical and

electromagnetic certification to

Independent Communications

Authority of South Africa (ICASA)

and Nigerian Communications

Commission (NCC) respectively.

These certificates are based on

Electrical Safety Testing EN50191

and European Standard for Safety

of Battery Chargers ENE 03352-29

standard for South Africa, and

international specifications and

regulations for Nigeria respectively.

Frequently asked questions on EMF http://www.mtn.com/

sustainability

EMF

Our staff, contractors, customers,

communities and regulators have

a vested interest in the way we

manage electromagnetic

frequency of cellular handsets

and network equipment.

We keep up with the latest

international research and scientific

publications on EMF, and we

comply with the following

international standards:


Advancing sustainable societies continued

Employee safety Occupational health and safety

officers ensure safe working

conditions for our staff in all our

operations. Specific high risk issues

of safety relate to installation,

operation and maintenance of

masts, and exposure of employees

and contractors to EMF emissions at

base station sites. These technical

employees are required to

undertake compliance training to

ensure that they operate safely and

knowledgeably, and certified

training to minimise occupational

exposure is available to all

employees and contractors working

close to network antennae. Through

MTN’s Safe for You programme in

partnership with International SOS

programme, all employees can work

and travel securely in the knowledge

that they can access a network of

medical, security, travel, routine and

emergency advice and assistance,

and security evacuation. This service

is available telephonically, online

and locally (on-the-ground)

365 days a year.

Anti-corruptionFraudulent and corrupt activities are

a threat to the sustainability of any

business. Our anti-corruption policy

and plan to combat fraud is

implemented through a holistic

approach of proactive fraud risk

assessments, audit plans, and

conducting fraud awareness training

and reporting. Reactive sources of

managing fraud include audit

reports, use of our whistleblower

line, investigations, maintenance of

fraud registers and departmental

sources of data. We continue to

encourage our employees to use

our whistleblower line, called

Tip-offs Anonymous, which we use

as an indicator that our employees

are aware of the importance of

anti-corruption and they report

corrupt activities.

➛ 86% of our operations have been trained on the management of fraud and corruption.

In 2011 we undertook training on

the identification and control of

corruption and fraud issues to MTN

Sudan. Only MTN Iran, Afghanistan

and Botswana have yet to undergo

formal training, which we hope to

complete by 2013 respectively.

Human rightsGiven our own recent history, as

South Africans we are particularly

conscious of human and civil rights.

In doing business, we work within

the laws of the countries where we

operate. MTN is acutely aware of

the human rights and privacy

dimensions that impact any

company in the telecommunications

sector. MTN operates within strict

ethical principles that dictate what

we do and how we behave. We

expect our partners to operate within

a similar framework.

In early 2012 we set up a board

social and ethics committee which

provides guidance on how we

handle complicated issues,

including human and civil rights.

We believe also there is a role for

international bodies to draw up

suitable codes of engagement with

governments and MTN is keen to

draw on the expertise of third

parties to think through how these

issues are handled.

The MTN Group supports complete

freedom of association, although

across our countries of operation

very few of our employees belong

to unions. Of employees in our

South African operations, 8,76%

belong to trade unions. Procedures

for consulting our employees are in

place across all our operations, and

are driven by the head of Human

Resources in our operations.

Diversity is a cornerstone of MTN’s

success – employees continue to

express enthusiasm about “the

international nature of the

Company”, where 55 nationalities

are represented. Our Code of Ethics

specifies the right of non-

discrimination in terms of race,

colour, sex, sexual orientation, place

of origin, citizenship, creed, and

political persuasion, age, marital or

family status or disability.

MTN and Iran http://www.mtn.com


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

through the provision of

mentorship, support, advice and

procurement from emerging

entrepreneurs. To address the need

for cost-effective communication

solutions, MTN Business’ MTN4SME

offers a range of discounts to small

businesses with between two and

two hundred employees.

In Nigeria, MTN’s Village Phone

project operating since 2007 has

helped 4 500 mainly women-owned

vendors increase their incomes and

expand their business skills.

Beneficiaries receive recharge

cards, a mobile phone, an antenna,

a solar charger, MTN promotional

materials and basic accounting

business training. The vendor then

uses their handset to allow

customers to make and receive

calls, hence the term “village

phone”. MTN Nigeria’s Bizlift

programme supports more than

53 000 retailers, by providing a

source of business ideas, access to

finance and sales material. We are

pleased to count disabled people

and youth-owned enterprises as

part of this scheme. In Uganda, a

trial using solar and kinetic (bicycle)

power to recharge community

phones has seen MTN enable users

to earn an average of US$60 a

month, increase sales of electric

lights by 12%, improve commission

for dealers, and reduce the use of

petrol-powered generators.

Anecdotal feedback from dealers

indicates an improvement in their

living standards and an improved

ability to save money. In Liberia,

MTN employed 300 community

members to assist with subscriber

registration. In Iran purchasing 100%

of our recharge vouchers and SIM

cards locally has helped develop the

local economy. MTN South Africa

has for more than two years met its

targets with respect to enterprise

development, spending more than

R117 218 389.87.

Enterprise development

The development of small to

medium enterprises contributes

significantly to the GDP of African

economies. For example in South

Africa, SMEs contribute about 40%

to the country’s GDP. Our footprint

across emerging economies

provides us with the opportunity

to support the growth of small

enterprises in emerging economies.

Our aim is to provide support up to

the point where they are profitable

and sustainable. We achieve this


MTN

CSIFramework

Health

Education

Arts and Culture

National Priorities

The diagram above indicates the focus areas of the MTN foundations, which seek sustained results in key areas of human development.

Advancing sustainable societies continued

During 2011, we developed a new

Group-wide strategy for community

engagement, informed by our ICT

business strategy and national

development agendas. The strategy

also takes into account the need to

standardise governance and

reporting, and measure and

evaluate the impact of our

foundations. The aim of this

standardisation is to improve

efficiency and sharing of knowledge

and best practices.

Foundations’ investment (R million)

20112010

154

665

128

485

MTN Foundations’ investment by focus area, 2011

■ Education■ Health ■ Arts and culture■ National priorities

R59 709 038

R26 255 579

R10 746 243

R31 774 969

Case study: http://www.mtn.com/sustainability

MTN foundationsThe Group President and CEO has

directed that all operations are to

establish foundations that are

funded by up to 1% of profit after

tax (PAT). MTN Foundation projects

are aimed at establishing sustainable

initiatives that promote partnerships

with our communities. We channel

our investment toward

developmental priorities in the

countries in which we operate.

The decline in the amount spent on

CSI programmes for 2011 compared

to 2010 is as a result of our projects

running over multiple

reporting periods; payments are

effected once certain milestones

are achieved and only then do we

report spending. In addition, some

of our operations experienced

sociopolitical unrest during the

reporting year which delayed the

progress of our projects.

We hope to finalise and roll out the

Group CSI strategy starting in 2012.

We intend to focus 80% of our

efforts on education as a key focus

area for our CSI spend over a period

of years, while still continuing to

support requirements for health and

national priority initiatives. The focus

in 2012 is on rolling out our newly

developed CSI strategy.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

the public, and providing

alternatives to people who rely on

trees for fuel and other uses, MTN

Ghana won the 2011 Group

President and CEO trophy and

US$100 000.

emphasise the social, economic and

environmental value of forests. Since

weather conditions were unbearably

hot in some of the countries in which

we operate (e.g. in Afghanistan and

Cyprus) during June, our volunteers

could also elect to implement other

projects that could improve their

local environments while not

working outdoors for extended

periods of time. Examples of such

projects included: computer literacy

using existing resources, cleaning

water streams, plastic recycling,

education and public health.

Each of our operations were asked

to plant 1 000 trees. Over 66 000

trees were planted by MTN

employees during this time.

➛ exceeded our target by 214%

From setting ambitious goals,

showing the most enthusiasm,

running secondary campaigns such

as cleaning water streams and

recycling which supported the main

campaign of tree planting, to local

television quizzes to create

environmental awareness amongst

Commendations for leadership and

spirit, relationships, can-do,

innovation and integrity were

received by MTN Swaziland, Sudan,

Rwanda, Nigeria and Côte d'Ivoire

respectively.

To see our employees in action in their communities, go to:

http://www.mtn.com/sustainability

Volunteering Employee volunteerism is an

important part of our culture. MTN

21 Days of Y’ello Care programme is

structured to allow employees to

give back to their communities, and

takes place annually, usually within

the month of June each year.

Guidelines on how our employees

can engage in community

development work are provided and

structured around a theme.

Our 2011 volunteering theme

focused on environmental

sustainability. This was in line with

United Nations General Assembly

declaration of 2011 as the “Year of

International Forests”.

The reason we selected this theme

was to create awareness and

contribute towards habitat diversity,

help create carbon sink in rainforest

areas, improve shelter, and

To get active, enthusiastic, strategic and high impact employee volunteerism, the Group President and CEO offers an incentive to all MTN operations. Even though the personnel motivation of our employees is evident, the value of the prize, which the winning operations reinvest in their community effort the following year, is also proving to be an excellent motivator for our operations, which compete with each other for the best volunteer programme. In 2011, MTN Ghana proved the most worthy Group winner. MTN Congo-Brazzaville, Sudan and Uganda each won US$30 000/R240 000 for the highest-scoring volunteer initiatives in each of our operating regions (WECA, MENA and SEA respectively).


Annual sustainability statement

We measure our performance using material indicators of progress, and increase the scope of quantitative

performance tracking each year.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Each year we try to improve our report by setting out our performance in terms of meaningful indicators that provide a clear, comprehensive and useful

measure of our progress quantitatively. We refine indicators each year, allowing us to review our performance and inform business planning.

Business performance area Unit Notes 2011 20102011 Target if applicable

Network dataBase stations 39 694 36 750

Broadband investments since 2008 US$‘000 230 000 Not applicable

Ethics and governanceOperations trained in anti-corruption practices % 86 85

Regulatory fines > US$50 000 Number 1 4 Not available

Regulatory fines > US$50 000/ZAR:400 000 R‘000 1 36 905 Not available

Customer dataNumber of subscribers Number ‘000 164 500 141 600

Employee dataTotal staff 2 24 252 26 055

• MENA 6 566 6 696

• SEA 7 708 9 313

• WECA 9 699 9 761

• MANCO 279 285

Employee turnover % 3 7,1 9,6

Gender diversity (Females % total employees) % 32 34

Employee learning and development R'000 4 265 235 249 572

Training hours per employee 16 30,8

Learnerships 5 474 1 081

Employees getting performance review % 100 100

Employee satisfaction (Culture Survey) % 6 69 68 See notes

Environmental dataCO2 emissions from energy use tonnes CO2e 950 564 1 126 894

• Scope 1 – direct emissions 536 541 743 646

• Scope 2 – indirect emissions 407 492 378 869

• Scope 3 – indirect emissions 6 531 4 379

Key statistics report


Key statistics report continued

Business performance area Unit Notes 2011 20102011 Target if applicable

CO2 intensity per subscribertonnes/

subscriber 0,58 0,79 –

CO2 footprint representation by subscriber % 78 80 –

MTN countries deploying alternative energy Number 14 14 –

E- waste pilot 2011-2014 R'000 868 R9 318 by 2014

• MTN Group and South Africa R'000 179 n/a €391 220/R4 096

• Partner: GIZ R'000 543 n/a €94 000/R984

• Partner: Technology Station R'000 146 n/a €26,000/R272

Community investment dataMTN foundations R'000 128 485 154 665

Volunteers (21 Day of Y'ello Care) 12 784 12 981

Social inclusivityBlack economic empowerment score (out of 100) 86,90 77,07

• Ownership 20 21,18 11,64

• Management control 10 8,42 8,39

• Employment equity 15 11,76 11,48

• Skills development 15 8,42 6,84

• Preferential procurement 20 17,12 18,72

• Enterprise development 15 15,00 15,00

• Socioeconomic development 5 5,00 5,00

1. Fines were issued by regulatory authorities to MTN Ghana and MTN Nigeria (along with other operators in Nigeria) for defaults in quality of service. Quality of service matters are being addressed through network upgrades.

2. For financial year 2010, we stated that our employee complement was 34 558 instead of 24 055. This is due to the fact that we erroneously reported employee numbers to include maintenance contractors, which includes security personnel, caterers and cleaners. We have therefore re-stated our 2010 employee numbers.

3. For financial year 2010, we stated that our employee staff turnover was 4,4% instead of 9.6% due to use of an incorrect employee number denominator, as indicated in the note above. We have therefore recalculated and re-stated our employee turnover for 2010.

4. For financial year 2010, we reported that the Learning and Development training spend was R182 156 million instead of R249 572 million. We have restated the 2010 figure. 5. Values exclude Liberia, Cote d’Ivoire, Benin, Guinea Bissau and Guinea Conakry. A number of learnership contracts came to an end in 2010, hence fewer learnerships in 2011.6. We use the Towers Watson Global Telecommunications norm to determine our targets against 14 dimensions. We exceeded six dimensions, met four dimensions and were lower than industry

norms on the remaining four dimensions.

Exchange rates used as at 31/12/11• US$:ZAR 1:8.069

• Euro:ZAR 1:10.4707


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

GRI report

We have adopted the Global Reporting Initiative G3 Guidelines and the G3 Telecommunications Sector Supplement in our integrated sustainability reporting

processes. We have assessed our GRI application to a level B.

• IR: MTN Group Limited Integrated Report for the year ended 31 December 2011.

• SR: MTN Group Limited Sustainability Report for the year ended 31 December 2011.

StRatEGy aNd aNalySIS

1.1 CEO statement IR: Group President and CEO’s Report page 24 – 27.SR: page 2 – 3.

1.2 Impacts, risks and opportunities (on stakeholders and financial performance)

IR: Risk and opportunities page 11 – 13.SR: Eco responsibility page 24.

ORGaNISatIONal pROfIlE

2.1 Name of reporting organisation MTN Group Limited.

2.2 Products, services IR: MTN’s core offering page 5.www.mtn.com/offering.

2.3 Operating structure IR: MTN Group structure page 6.

2.4 Location of Headquarters Phase 2 Building; Innovation Centre; 216 14th Avenue; Fairland, South Africa.

2.5 Geographic scope/map of operations IR: MTN Group profile; Footprint page 6 – 7.

2.6 Nature of ownership and legal form IR: MTN Group profile; Footprint page 6 – 7.

2.7 Profile of customer base IR: Core offerings page 5; www.mtn.com/offering.

2.8 Scale of operations IR: MTN Group footprint page 6 – 7.SR: Report period and scope page 59.

GRI indicator MTN’s response


2.9 Changes occurring within the reporting period IR: MTN Group profile; Footprint page 6 – 7.

2.10 Awards received SR: Awards and recognition page 64.Various on www.mtn.com.

REpORt paRaMEtERS

Report profile

3.1 Reporting period 1 January 2011 ending on 31 December 2011.

3.2 Date of most recent report 31 May 2011.

3.3 Reporting cycle (annual etc.) Annual.

3.4 Contact point for queries IR: Administration page 230.SR: Where to find more information page 59.

Report scope and boundary

3.5 How was report content defined SR: Period and scope, stakeholders, report content, materiality; aligning page 58 – 59.

3.6 Report boundaries SR: Period and scope, stakeholders, report content, materiality; aligning page 58 – 59.

3.7 Limitations on scope SR: Period and scope, stakeholders, report content, materiality; aligning page 58 – 59.

3.8 Reporting of joint ventures, subsidiaries etc. SR: Period and scope, stakeholders, report content, materiality; aligning page 58 – 59.

3.9 Data measurement SR: Annual Sustainability Statement page 34 – 36.

3.10 Restatements from previous report SR: Annual Sustainability Statement notes to statement on page 34 – 36.

3.11 Changes from previous report Sustainability focus areas were reduced to three from six reported in 2010. This was done to ensure that key material issues are attended to and adequately addressed.


GRI report continued


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

3.12 GRI table location SR: GRI page 37 – 51.

Assurance

3.13 Policy on independent assurance IR: Assurance Statement; Combined Assurance page ii; page 55.

Governance

4.1 Company's governance structure (including major committees)

IR: Governance highlights; page 50.

4.2 Is the chairman also an executive officer? No.

4.3 Board profile (number, gender, Executive vs. Non-executive)

IR: Group board of directors page 16 – 19.

4.4 How do stakeholders provide recommendations to Board?

IR: Interacting with stakeholders page 10.

4.5 Link between remuneration and leadership performance

IR: People and Remuneration Report page 58 – 73.

4.6 Managing conflicts of interest IR: People and Remuneration Report – Directors’ interests; Key Compliance achievements page 72; page 51.

4.7 Process for determining leadership qualifications The board and exco members skills and qualifications are assessed during their recruitment process. Assessment of the board skills is done on an ongoing basis during board evaluation.

4.8 Internally developed mission/value statements, principles or codes related to sustainability

IR: Social and Environmental Report page 74.SR: Governance page 8 – 11.

4.9 Board oversight of sustainability IR: Social and Environmental Report: Governance page 74.SR: Governance page 8 – 11.

4.10 Processes for evaluating the board's sustainability performance

IR: Social and Environmental Report: KPIs page 74.SR: Governance page 8 – 11.

Commitments to external initiatives



4.11 Use of the precautionary principle SR: Eco-responsibility: Network Environmental Impacts page 26.

4.12 External charters or principles endorsed (e.g. EEA, GC) None.

4.13 Strategic memberships endorsed (e.g. EEA, GC) None.

Stakeholder engagement

4.14 List of stakeholder groups IR: Interacting with stakeholders page 10.SR: Stakeholders, Report content, Materiality page 61.

4.15 How are stakeholders identified? IR: Interacting with stakeholders page 10.SR: Stakeholders, Report content and Materiality page 61.

4.16 Ongoing mechanisms for stakeholder engagement (who, how, what outcome)

IR: Interacting with stakeholders page 10.SR: Stakeholders, Report content and Materiality page 61.

4.17 Stakeholder concerns and how the organisation responded

IR: Interacting with stakeholders page 10.SR: Stakeholders, Report content and Materiality page 61.

ECONOMIC

Disclosure on management approach

EC:MD Management approach: economic performance, market presence and indirect economic aspects

IR: Key statistics; Group President and CEO’s Report; Group Chief Financial Officer’s Report; Five-year Financial Review page 9; page 24 – 27; page 28 – 31; page 34 – 36.SR: Annual Sustainability Statement page 34 – 36.

Economic performance

EC1 Economic value added IR: Key statistics; Five-year Financial Review page 9; page 34 – 36.

EC2 Climate change related financial implications, risks and opportunities

IR: Integrated risks and opportunities page 11; page 13.SR: Eco-responsibility page 24.

EC3 Defined benefit plan obligations Permanent employees get paid maternity and paternity leave, flexible working hours, child care facilities/subsidies, pension.

EC4 Significant financial assistance received from government

MTN Group and its operations: (excluding MTN South Africa) do not receive financial assistance from government.MTN South Africa contributes 1% of its annual payroll to the national Skills Development Levy. A 50% rebate on this contribution is received, and the Company uses this to further training and skills development programmes.

IO1 Capital investment in telecommunication network infrastructure broken down by country/region

IR: Key statistics; Five-year Review; Capital commitments page 9; page 36; page 160.




Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

IO2 Net costs for MTN under the Universal Service Obligation when extending service to geographic locations and low-income groups, which are not profitable

The MTN Group has not separately calculated or ring-fenced the net costs of extending service to geographic locations and low-income communities which are not profitable, due to the nature of the business’s operations in emerging markets across Africa and the Middle East, where low-income and geographic spread of markets are a feature of some of these markets.

Market presence

EC5 Standard entry level wage compared to local minimum wage

The MTN Group pays entry level wages equal to or above local minimum wages in each country in which the Company operates.

EC6 Policy, practices, and proportion of spending on locally-based suppliers

IR: Social and Environmental Report page 76.SR: Sustainable societies – enterprise development page 31.

EC7 Procedures for local hiring (including senior management)

The MTN Group hires locally as far as possible. A significant majority of employees, including management, at each of the Company’s operations are citizens of the respective countries where the Company operates.

Access to telecommunications products and services: bridging the digital divide

PA1 Policies and practices to enable the deployment of telecommunications infrastructure and access to telecommunications products and services in remote and low population density areas

IR: Group strategy; Digital divide page 8; page 75.SR: Sustainable economic value page 13 – 17.

PA2 Policies and practices (and business model applied) to overcome barriers for access and use of telecommunication products and services, including: language, culture, illiteracy and lack of education, low income, disabilities and age

IR: Group strategy; Digital divide page 8; page 75.SR: Sustainable economic value page 13 – 17.

PA3 Policies and practices to ensure availability and reliability of telecommunications products and services and quantify, where possible, for specified time periods and locations of down time

IR: Integrated risks and opportunities; Capital Investments page 13.

PA4 The level of availability of telecommunications products and services in areas where MTN operates

IR: Operational Review (top 5) page 38; 40; 42; 44; 46.www.mtn.com/investors Audited results for year end 31/12/2011: Review of Results page 14 – 16.SR: Sustainability and MTN’s context page 6.



PA5 Number and types of telecommunication products and services provided to and used by low- and no-income sectors of the population, with definitions of these designated groups

SR: Sustainable economic value page 13 – 17.

PA6 Programmes to provide and maintain telecommunication products and services in emergency situations and for disaster relief

SR: Sustainable economic value – connecting refugees page 16.

Indirect economic impacts

EC8 Positive public impact of pro bono/donated infrastructure and services

IR: Key statistics; Social and Environmental Report page 9; page 74.SR: Sustainable societies; Annual Sustainability Statement page 32 – 33; page 38.

EC9 Significant indirect economic impacts (including extent)

The MTN Group has not conducted a socio-economic impact assessment. However, investment in indirect economic impacts is located at:IR: Key statistics page 9.SR: Annual Sustainability Statement page 38.

ENVIRONMENtal


EN:MD Management approach: energy, water, materials, biodiversity, emissions, effluents and waste

Based on a materiality assessment, various aspects of the MTN’s Group environmental impact are addressed below. This includes management approach, quantified impact and solutions implemented:IR: Social and Environmental Report – Eco-responsibility page 76 – 78.SR: Eco-responsibility page 22 – 27.

Materials

EN1 Materials used (weight/volume) The most material resources used is electronic and electrical equipment. The MTN Group is in the process of quantifying this:SR: Eco-responsibility page 22 – 27.

EN2 Percentage of recycled materials used Due to the nature of products and services offered, the MTN Group does not consider this indicator to be material for its operations. The Group is, however, looking into e-waste recycling and re-use.




Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Energy

EN3 Direct energy use (by primary source) IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23; page 34 – 36.www.cdproject.net (MTN reports).

EN4 Indirect energy use (by primary source) IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23; page 34 – 36.www.cdproject.net (MTN reports).

EN5 Energy saved due to efficiencies IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23; page 34 – 36.www.cdproject.net (MTN reports).

EN6 Energy efficiency/renewable energy initiatives IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23 – 26; page 34 – 36.www.cdproject.net (MTN reports).

EN7 Initiatives to reduce indirect energy consumption IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23 – 26; page 34 – 36.www.cdproject.net (MTN reports).

Water

EN8 Total water withdrawal by source Due to the nature of MTN’s business, this indicator is not material. However, as part of the implementation of ISO 14001 in operations and LEED certification in MTN South Africa, responsible water management and use is addressed.

EN9 Water sources significantly affected by withdrawal of water

Due to the nature of MTN’s business, this indicator is not material.

EN10 Percentage and total water volume of water recycled and reused

Due to the nature of MTN’s business, this indicator is not material. However, as part of the implementation of ISO 14001 in operations and LEED certification in MTN South Africa, responsible water management and use is addressed.



Biodiversity

EN11 Location and size of land owned, leased or managed in biodiversity-rich habitats

The MTN Group does not currently report against this indicator.

EN12 Impacts of operations on areas of high biodiversity value

SR: Eco-responsibility – Network Impact page 26.

EN13 Habitats protected or restored None.

EN14 How are impacts on biodiversity being managed? SR: Eco-responsibility – Network Impact page 26.

EN15 Number of conservation list species affected by operations

The MTN Group does not currently report against this indicator:SR: Eco-responsibility – Network Impact page 26.

Emissions, effluent and waste

EN16 Total direct and indirect greenhouse gas emissions by weight.

IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23; page 35 – 36.www.cdproject.net (MTN reports).

EN17 Other relevant indirect greenhouse emissions by weight

IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23; page 35 – 36.www.cdproject.net (MTN reports).

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved

IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 24 – 26; page 36.www.cdproject.net (MTN reports).

EN19 Emissions of ozone-depleting substances by weight Due to the nature of MTN’s business, this indicator is not material.

EN20 NOx, SOx, and other significant air emissions by weight and type

Due to the nature of MTN’s business, this indicator is not material.

EN21 Total water discharge by quality and destination The only water discharged is through the municipal sewer. Due to the nature of MTN’s business, this indicator is not material.

EN22 Total amount of waste by type and disposal method The most material waste generated is old/redundant electronic and electrical equipment. Some of the Group’s network e-waste is subject to supplier take-back agreements. The MTN Group is in the process of quantifying e-waste: SR: Eco-responsibility page 27.




Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

EN23 Total number and volume of significant spills No significant spills were reported by MTN operations.

EN24 Weight of transported, imported, exported or treated hazardous waste

Due to the nature of MTN’s business, this indicator is not applicable.

EN25 Water discharge impacts on biodiversity and water bodies

The only water discharged is through the municipal sewer. Due to the nature of MTN’s business, this indicator is not material.

Products and services

EN26 Initiatives to mitigate environmental impacts SR: Eco-responsibility page 24 – 27.www.cdproject.net (MTN reports).

EN27 Percentage of reclaimed products/packaging materials Not available.

Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

No significant monetary fines and non-monetary sanctions for non-compliance with environmental laws and regulations have been reported.

Transport

EN29 Significant environmental impacts of transport use (for products, materials, members of the workforce)

Although transportation is not a source of significant environmental impacts and is not deemed material, greenhouse gas emissions associated with transport are quantified. IR: Key statistics; Environmental and Social Report page 9; page 74.SR: Eco-responsibility – Energy, Carbon and Climate; Annual Sustainability Statement page 23; page 35 – 36.www.cdproject.net (MTN reports).

Overall

EN30 Environmental protection expenditure The MTN Group does not track this indicator as part of core business activity. During 2011, over 66 000 trees were planted by MTN employee volunteers in local communities in support of the UN International Year of Forests.

IO7 Policies and practices on the siting of masts and transmission sites including stakeholder consultation, site sharing and initiatives to reduce visual impacts

SR: Eco-responsibility – Network Impact page 26.

IO8 Number and percentage of stand-alone sites, shared sites and sites on existing structures

Not available



Resource efficiency

TA1 Provide examples of the resource efficiency of telecommunication products and services delivered

IR: Environmental and Social Report – Eco-responsibility page 76.SR: Sustainable economic value page 17 – 19.www.cdproject.net (MTN reports).

TA2 Provide examples of telecommunication products, services and applications that have the potential to replace physical objects

IR: Environmental and Social Report – Economic Business Converged Solutions page 76.SR: Sustainable Economic Value page 17 – 19.

TA3 Disclose any measures of transport and/or resource changes of customer use of the telecommunication products and services listed above. Provide some indication of scale, market size or potential savings

SR: Sustainable Economic Value – MTN Everywhere you work and travel page 18.

TA4 Disclose any estimates of the rebound effect (indirect consequences) of customer use of the products and services listed above, and lessons learned for future development. This may include social consequences as well as environmental

Not available.

laBOUR pRaCtICES aNd dECENt WORK


LA:MD Management approach: employment, labour relations, occupational health and safety, training and education and diversity and equal opportunity

IR: People and Remuneration page 58 – 60.SR: Sustainable Economic Value – Investing in Employees; Sustainable Societies – Employee Safety page 19; page 30.

Employment

LA1 Employee numbers SR: Annual Sustainability Statement page 34 – 36.

LA2 Employee turnover SR: Annual Sustainability Statement page 34 – 36.

LA3 Full-time employee benefits not provided to temporary/part-time employees

Permanent employees get paid maternity and paternity leave, flexible working hours, child care facilities/subsidies, pension.

Labour/management relations

LA4 Percentage unionised employees SR: Sustainable Societies – Human Rights page 30.

LA5 Minimum notice period(s) regarding significant operational changes

The Group provides internal notification to employees regarding significant operational changes.




Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Occupational health and safety

LA6 Employee representation in health and safety committees

IR: People and Remuneration page 59.SR: Sustainable Economic Value – Investing in Employees; Sustainable Societies – Employee Safety page 18 – 19, page 30.

LA7 Total number of work-related fatalities, rates of injury, occupational diseases, lost days and absenteeism

No work-related deaths were reported in 2011. Reporting systems to specifically identify injuries and absenteeism due to work-related reasons (compared to current reporting of all injuries and absenteeism in operations which may or may not be workplace-related) are under development.

LA8 Employee wellness programmes regarding serious diseases

IR: People and Remuneration page 60.

LA9 Health and safety topics covered in formal agreements with trade unions

Not available.

IO3 Practices to ensure health and safety of field personnel involved in the installation, operation and maintenance of masts, base stations, laying cables and other activities

SR: Sustainable Societies – Employee Safety page 30.

Training and education

LA10 Average hours of training per employee per year SR: Annual Sustainability Statement page 34 – 36.

LA11 Employee skills and training programmes IR: People and Remuneration page 59.SR: Sustainable Economic Value – Investing in Employees page 19 – 20.

LA12 % employees receiving performance reviews and career development

SR: Annual Sustainability Statement page 34 – 36.

Diversity and equal opportunity

LA13 Composition of governance bodies IR: Governance page 50; page 54 – 55.

LA14 Ratio of basic salary of men to women by employee category


LA15 Return to work and retention rates after parental leave, by gender




HUMaN RIGHtS


HR:MD Management approach: investment and procurement practices, non-discrimination, freedom of association and collective bargaining, abolition of child labour, prevention of forced and compulsory labour, complaints and grievance practices, security practices, and indigenous rights

SR: Sustainable Societies – Inappropriate content, Cyber-security, employee security; anti-corruption; human rights page 29 – 30.

Investment and procurement activities

HR1 Percentage and number of significant investments that have undergone human rights screening


HR2 Percentage of significant suppliers and contractors that have undergone human rights screening


HR3 Total hours and number of employees receiving human rights training


Non-discrimination

HR4 No of incidents of discrimination and action taken The MTN Group does not currently report against this indicator.

Freedom of association and collective bargaining

HR5 Any incidents where freedom of association/collective bargaining was at risk? Actions taken?


Child labour

HR6 Any incidents of child labour and measures taken? The MTN Group specifically assessed whether any children were employed by the business, and found that youngest employee was 17 years of age.

Forced and compulsory labour

HR7 Any incidents of forced labour and measures taken? No incidents.

Security practices

HR8 Percentage of security personnel trained in human rights





Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Indigenous rights

HR9 Any incidents where indigenous people's rights were violated and measures taken?

No incidents.

HR10 Percentage and total number of operations that have undergone human rights reviews


HR11 Number of human rights grievances filed, and resolved through formal mechanisms

The MTN Group does not currently report against this indicator; however, in early 2012 a possible complaint in this respect has been lodged. See http://www.mtn.com/MTNIran/Pages/MTNIran.aspx for more information.

SOCIEty


SO:MD Management approach: community, corruption, public policy, anti-competitive behaviour and compliance

SR: Sustainable Societies – Anti-corruption page 30.

Community

SO1 Percentage of operations with local community engagement, impact assessments, and development programmes

52% of MTN operations have a formal Foundation. 100% of operations undertake development programmes through enterprise development, volunteering, and community-based sponsorships such as in education or health-related fields. The impact of community investment has not been assessed by MTN Group.

Access to content

PA7 Policies and practices to manage human rights issues relating to access and use of telecommunications products and services

IR: Group strategy; Digital Divide page 8; page 75.SR: Sustainable Economic Value – Digital Divide; Sustainable Societies – Cyber-security; Human Rights page 30.

Corruption

SO2 Business units analysed corruption risks SR: Sustainable Societies – Anti-corruption page 30.Although 86% of operations have been trained to date on anti-corruption practices, all operations are analysed for corruption risks.

SO3 Employee training regarding anti-corruption SR: Sustainable Societies – Anti-corruption page 30.

SO4 Actions taken in response to incidents of corruption Due disciplinary processes are followed to investigate and resolve matters of ill discipline including corruption. Sanctions may range from warnings to termination of employment.



Public policy

SO5 Engagement in public policy The MTN Group remains politically neutral in all countries of operation. However, where public comment on national policies is invited, as in the case of potential carbon taxes in South Africa, commentary is offered.

SO6 Financial/in-kind contributions to political parties MTN Group is politically neutral. The Company adheres to the South African Electoral Commission rules and has previously provided funding to all political parties according to their total representation of votes within the national parliament.

Anti-competitive behaviour

SO7 Number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices

http://www.mtn.com/MTNIran/Pages/MTNIran.aspx.

Compliance

SO8 Monetary value of significant fines and number of non-monetary sanctions for non-compliance with regulations SR: Annual Sustainability Statement – Quality of Service page 34 – 36.

SO9 Operations with significant negative impacts on local communities. None.

SO10 Prevention and mitigation of significant negative impacts on local communities, by operation SR: Eco-responsibility – Network Impact page 26 - 27.

TA5 Description of practices relating to intellectual property rights and open-source technologies The MTN Group upholds intellectual property rights in its business operations.

pROdUCt RESpONSIBIlIty


PR:MD Management approach: customer health and safety, product and service labelling, marketing communications, customer privacy, and compliance

IR: Social and Environmental Report – Sustainable Societies page 77.SR: Sustainable Societies – Customer safety and cybersecurity page 29.

Customer health and safety

PR1 Life cycle stages of products/services assessed for health and safety impacts (including % of products/services assessed)

SR: Sustainable Societies – EMF page 29.




Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

PR2 Incidents of regulatory non-compliance concerning health and safety impacts of products and services

None.

PA8 Policies and practices to publicly communicate on EMF related issues

SR: Sustainable Societies – EMF page 29.

PA9 Total amount invested in programmes and activities in electromagnetic field research

Not available.

Product and service labelling

PR3 Product/service information required by procedures None.

PR4 Incidents of regulatory non-compliance concerning product and service information labelling

None.

PR5 Customer satisfaction practices (surveys etc.) We use extensive surveys in all our operations to gauge customer satisfaction and perceptions on a quarterly basis.

Marketing communications

PR6 Adherence to marketing, promotions and communications standards

Compliance with local laws, standards and codes.

PR7 Incidents of regulatory non-compliance concerning marketing communications

No incidents have been reported by operations.

PA10 Initiatives to ensure clarity of charges and tariffs None.

PA11 Initiatives to inform customers about product features and applications that will promote responsible, efficient, cost effective and environmentally preferable use

Part of marketing and product information.

Customer privacy

PR8Incidents of substantiated breaches of customer privacy and losses of customer data

Although unsubstantiated, incidents have been informed to the Company. See http://www.mtn.com/MTNIran/Pages/MTNIran.aspx for latest information.



2012 - 2013 commitments

We have set 13 governance, sustainable economy and society,

and eco-responsibility commitments.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Commitment Target

Governance Provide training to Botswana and Afghanistan in anti-corruption practices Q4 2012

Sustainable economy Improve procurement efficiencies to achieve sustainable savings 15% off US$350 million, by

31 December 2013

Extend access to MTN Mobile Money and mobile remittances Q4, 2012 in Afghanistan

Nigeria and Yemen

Launch audio conferencing service to offer virtual meetings and conference solution Q1, 2012 in Ghana

Introduce the ultra low-cost handset (ULCH GPRS) in all our markets at US$18 Q3/Q4 2012

Explore the feasibility of low-cost solar handset in the low end segment in Zambia,

Sudan, Benin, Cote d’Ivoire, Cameroon and Uganda

Q3/Q4 2012

Eco-responsibility Complete detailed energy reviews in detail for MTN SA and MTN Nigeria Q2, 2012

Start climate management strategy development Q3, 2012

Set relative baseline for GHG emissions Q4, 2012

Continue investment in alternative and energy-efficient network sites Ongoing

Appoint downstream recyclers (SME and large) to recycle e-waste at pilot sites Q3, 2012 at MTN South

Africa pilot sites

Obtain LEED certification for MTN South Africa 14th Avenue premises Q2, 2012. Target: silver level.

Stretch target: gold level

Sustainable society Implement new MTN foundations’ strategy Q3, 2012


MTN Group operational reports

MTN presents the sustainability reports of the Group's top five operations in terms of subscriber

numbers and revenue contribution.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

nationally, but a combination of

initiatives and processes to actively

reduce energy and carbon

emissions and switch to alternative

power is being pursued. The

R22 million 2 megawatt tri-

generation plant in Johannesburg

launched in 2010 is being

complemented by a 4MW similar

site also underway in Pretoria.

Approximately 8 000 certified

emission reduction credits from the

initial project were available for

trading following UN certification,

and have been contracted for sale

at 94% of the EU ETS spot price. We

have 22 off-grid solar, wind, biomass

and hybrid BTS sites nationally, and

continue to increase our portfolio of

alternative energy sites. A holistic

approach to network energy

management includes multiple

engineering solutions from smart

metering and free cooling to

battery monitoring and rapid site

deployment and efficient technical

(engineering) and civil site

architecture. We aim to achieve

silver level Leadership in Energy and

Environmental Design (LEED)

certification for our head office by

mid-2012, and are an ISO14001

certified company. R179 000 was

spent on the preliminary phase of

a three-year partnership with

Gesellschaft für Internationale

Zusammenarbeit (GIZ) GmbH (total

invested including partner

contribution: R868 000) which will

end in 2014.

Sustainable societies

We address matters of customer

cybersecurity and safety through

software filtering. The Group-wide

approach of zero tolerance to

corruption is implemented by

MTN South Africa. Sponsorships for

government-driven initiatives are

undertaken, but political donations

are not made to political parties

and entities. We have met our

targets with respect to enterprise

development, spending more than

R117 218 389,87 and obtained a

full 15 points in terms of the national

Black Economic Empowerment

scorecard. R47,9 million was spent

on education, health, and arts and

culture community investment

projects over 2011.

MTN Nigeria

Working to improve socio-

economic development in rural

areas.


MTN Mobile Money was launched

in Lagos in 2012; it will be extended

to rural areas to help address the

financial divide. Nigeria is the largest

user of social media solutions in

Africa. MTN Opera Mini Browser has

been widely embraced, and some

customers report data cost

reductions of up to 85%.

Eco-responsibility

Being predominantly dependent on

diesel to function, our carbon

footprint stands at 460 tonnes CO2e

p.a. We have embarked on an

aggressive drive to connect 1 000

rural base stations to

telecommunications through

connection to the national grid.

Phase One saw 254 sites complete,

connecting 317 villages, and saving

over 1 300 litres of diesel per month.

The number of staff vehicles has

been reduced; new buses and more

bus routes for staff have been

MTN Group operational reports

MTN South Africa

Integrating energy efficiency and

environmental management in

support of market differentiation

focus areas.


We focused on significant ICT

integration in 2011, offering

value-added solutions such as the

Opera Mini Browser and Pay-D,

enabling cellphones to be used as

point of sale terminals for online

debit card purchases. MTN Business

extended data offerings to include

air quality and water monitoring

solutions, complementing a number

of tele-presence, cloud computing/

server virtualisation, smart office

management and other similar data

solutions for corporate clients. Retail

clients were challenged by MTN Play

and mobile applications to enhance

information for work, living, learning

and fun.

Eco-responsibility

Our carbon footprint is

165 000 tonnes CO2e p.a. Absolute

energy costs have increased


MTN Group operational reports continued

introduced which has improved

operational efficiency and reduced

carbon emissions. MTN promotes

the use of bio-degradable recharge

cards. We are ISO 9001: 2008

certified and we are targeting

ISO14001 certification in 2012.


MTN Bizlift is a structured

relationship management

programme designed to support

more than 53 000 SME retailers with

business ideas, finance and sales’

material access etc. MTN Village

phone has helped more than

4 500 mainly female-owned vendors

benefit from airtime and related

telecommunication services sales.

We have invested just over

R39,3 million on education, health

and national imperatives such as

enterprise development. Various

codes and policies have been

developed to support the

Company’s zero- tolerance approach

to corruption. As a non-political

business, no donations were made

to any political parties. MTN uses

AdaptiveMobile to address spam

management and built-in

mechanisms trace incidents of fraud.

Refer to our UN Global Compact

report at

www.unglobalcompact.org/COPs/

detail/12722

MTN Iran

Addressing network environmental

impact and encouraging local

enterprise development


Electronic recharging and m-Health

are some of the value-added

solutions offered over GPRS and

WiMax infrastructure.

Eco-responsibility

Our carbon footprint is 89,8 tonnes

CO2e p.a. The national power grid is

fairly stable and few sites run on

diesel generators. However the drive

to reduce carbon emissions and

extend services in rural areas led to us

investing in 35 off-grid sites (25 using

solar power). GPRS power meters to

remotely read energy consumption at

sites in one district have further

helped reduce OPEX, as has the

greater use of outdoor network sites,

using cloud computing and shared

service solutions to reduce data

centre power consumption,

after-hour light and cooling

switch-off, removing aviation lights

where practical at rooftop sites, and

free cooling and site insulation to

manage heat and cooling exchanges.

We will continue to implement

remote power meter reading, reduce

the number of network generators,

and implement hybrid solutions for

off-grid network sites over 2012.


Community health and safety is

addressed through random EMF

audits undertaken by MTN at network

sites, avoiding the building of sites

close to schools and hospitals, and

ensuring compliance with health and

safety rules. National authority

certification with respect to

obligatory EMF safety and

certification has been achieved.

The Company’s corporate values

of respect for human rights are

reflected in the way it does business

and all partners are expected to

adhere to these fundamental

principles. Our local empowerment

procurement plan encourages the

growth of enterprises and local

companies. 100% of recharge

vouchers and SIM cards are also

locally sourced which contributes to

direct and indirect job creation in Iran.

MTN Ghana

Integrated sustainability and core

business: an essential tool for

business growth


By focusing on developing

affordable and innovative services

that take into account customers’

needs, MTN Ghana is an excellent

example in the Group of using ICT

services to make a socioeconomic

difference while growing its

revenues. MTN Mobile Money,

m-Health, MTN Zone, m-Insurance,

MTN Opera Mini Browser,

m-Agriculture, refugee crisis and

natural disaster telecommunication

management solution, community

payphones and a partnership with

the UN Food Development

Programme to distribute credit

using mobile phones powered by

solar and (bicycle) kinetic power are

some of the solutions that benefit

MTN, its customers and the

communities. Its services are

supported by the rollout of 3G

technologies across regional capitals

and major cities, and this plan

continues into 2012.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Eco-responsibilityIn 2010, we outsourced

1 806 network sites to the

Ghana-American Tower Company, as

part of the Group’s site outsourcing

strategy. While outsourcing network

sites to management companies

has a number of economic and

environmental benefits for

operators, energy costs are usually

passed directly to the network

operator, and the Company

therefore continues to account for

the energy and carbon intensity of

any of these sites. Our carbon

footprint is 31,7 tonnes CO2e p.a.

Sustainable societiesWe invested over R32 million in 2011

on health, education and national

priority areas such as the

environment. We also won the

Group President and CEO’s 21 Days

of Y’ello Care trophy as the operation

that most embraced and

implemented an employee

volunteering programme in line

with the 2011 UN International Year

of Forests initiative which not only

made an on-the-ground difference,

but used television game shows and

other media to create national

awareness about the importance

of the environment. MTN Ghana

ensures that the network

equipment it deploys complies with

the requirements set by the National

Communications Authority.

MTN Syria

Striving to be the leading example of corporate citizenship in the Syrian community.

Sustainable economic valueWe are working on creating new

value through eco-innovation.

Reinforcement of dialogue with

customers is undertaken through

use of social network solutions.

Following a successful trial of

MTN Mobile Money with the

National Regulator, Visa acquired

Fundamo. As Visa is a US-owned

organisation, it is unable to transact

with Syria in terms of sanctions.

However, the demand for MTN

Mobile Money means the operation

will look at alternative means to

offer the service for water and

electricity payments, and subject to

final approval from the government,

Unstructured Supplementary

Service Data (USSD) will be used to

enable mobile money transactions.

We are working towards making

3G and 3.5G services ubiquitous to

the majority of the country, to

deploy large capacity microwave

and fibre-optic links to

transmissions nodes.

Eco-responsibilityOur carbon footprint is 18, 8 tonnes

CO2e p.a. A number of solutions to

reduce energy use and greenhouse

gas impact have been implemented

or are underway, and include the

following: conversion of most

indoor BTS, and all terminal and

sub-hub sites to outdoor sites, using

a phased approach in 2012, smart

battery backup systems which

reduce use of fuel, and testing new

shelter solutions for transmission

sites. We are also researching solar

power solutions that are most

efficient and suitable for its

requirements. A number of

environmental services were

implemented through facilities’

management in 2011, and included

utility bill review for variances,

after-hour generator management

and rotation, warehouse electrical

load loss management, after-hour

cooling timer installation and LED

lighting installation at new head

office. Pest control safety

management was also addressed.

Disposable batteries and paper are

recycled. National environmental

legislation is reviewed regularly to

ensure compliance.

Sustainable societiesMTN Syria’s UN Global Compact

submission for 2010 – 2011 was

promoted by the UN GC authorised

panel to membership level “GC

Advanced”. Please view the report at

www.unglobalcompact.org/COPs/

detail/12966. Our overall 2012

strategy includes carrying out social

contributions tailored to the

needs of local communities and

formulating a Quality Code of

Conduct. A zero tolerance approach

to fraud and corruption supported

by anonymous tipoff services is in

place. Equality and diversity are

codified in policy, and the diversified

employee base is reflected by a

36% female employee base. While

working within the centralised

Group procurement structures,

opportunities to supply stationery,

furniture, office and training

suppliers, and some IT device and

software services is given to local

business first to support growth

of local employment. In 2012

employee benefits will be extended

to include child care facilities or

subsidies.


Appendix

This report covers the financial year beginning on 1 January 2011 and ending on 31 December 2011.

The scope of this report covers all of our 21 countries of operations.


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Report period and scopeThis year we have provided both a

detailed Group report, and an

abridged operational report for our

five largest operations in South

Africa, Nigeria, Ghana, Iran and Syria,

as these operations contribute the

largest share of our revenues, and

have the most material impact on

the business’ performance. This

report also includes material

activities undertaken through Group

functions located in South Africa

and Dubai.

All financial information is reported in

South African rand (ZAR), using the

exchange rate as at 31 December

2011 of ZAR8,069: US$1.

Stakeholders, report content and materialityAs a result of engaging specific

stakeholder groups on sustainability

considerations for MTN during 2011,

ethical and socially responsible

investors, social and environmental

non-governmental organisations,

employees, public private

partnerships, suppliers, communities

and ICT industry bodies were

identified as the key stakeholders for

business sustainability programmes

and our sustainability focus.

The content of this report was

defined through a Group-wide

strategic review process detailed

below. Materiality was assessed by

taking three factors into account:

• an integrated risk and

opportunity assessment process,

used to identify sustainability

risks and opportunities for the

business

• stakeholder concerns

• industry direction as indicated

through forums such as ITU,

GSMA, GeSI.

These factors were weighted in an

internal materiality review. Material

issues were prioritised according to

the scale and frequency of impact

on business operation, economic

performance and specific

stakeholder groups.

Interacting with stakeholders http://www.mtn.com/investors




.beyond

Aligning reporting with international guidelinesWe report on sustainability in line with

international standards and guidelines

including the UN and Global

Reporting Initiative (GRI), UN Global

Compact, and carbon disclosure

project. MTN is also listed on the

JSE Socially Responsible Investment

(SRI) Index.

We continue to work to improve our

performance in the future. A full GRI

performance table is located within

this report.

We are working on our internal and

external assurance processes with

respect to our sustainability

performance, and aim to provide an

externally assured view of our

performance in future.

Where to find more information

This sustainability report provides a high level account of our sustainability strategy, performance, highlights and challenges.

Group Carbon Disclosure Project response,

community investments and case studies on

sustainability in action across MTN.

Our business strategy, governance, risk

management, financial and non-financial

information sustainable business performance.

Group Sustainability Manager

Private Bag X9955, Cresta, 2118, South Africa

[email protected]

http://www.cdproject.net http://www.mtn.com/investors




.beyond


About MTNLaunched in 1994, the MTN Group is

a multinational telecommunications

group, operating in 21 countries in

Africa, Asia and the Middle East.

The MTN Group is listed on the JSE

Securities Exchange in South Africa

under the share code: “MTN.” The

Group is also included in the JSE

Socially Responsible Investment

Index.

As at 31 December 2011, MTN

recorded 164,5 million subscribers

across its operations in Afghanistan,

Benin, Botswana, Cameroon, Cote

d’Ivoire, Cyprus, Ghana, Guinea

Bissau, Guinea Republic, Iran, Liberia,

Nigeria, Republic of Congo (Congo

Brazzaville), Rwanda, South Africa,

Sudan, Swaziland, Syria, Uganda,

Yemen and Zambia. We offer

mobile network voice and data

telecommunication and

information products and

services to the consumer and

business segment in the private

and public sector. In the

consumer segment especially,

we distribute our products and

services both directly via MTN

stores, and via a network of

independently-owned outlets.

Products and Serviceswww.mtn.com/offering

Appendix continued


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Group structure and footprint

100%

100%

100%

100% Service provider

100% Business Solutions

30% MTN Swaziland

96% MTN Uganda

53% Mascom Botswana

80% MTN Rwanda

86% MTN Zambia

100% MTN South Africa

MTN Dubai

MTN Holdings

MTN International

MTN Mauritius

70% MTN Cameroon

78,7% MTN Nigeria

65% MTN Côte d’Ivoire

49% MTN Irancell

100% MTN Congo-Brazzaville

49% Uganda Tower Inter Co

100%

60% Lonestar Cell

75% Areeba

98% MTN Ghana

85% MTN Yemen

85% MTN Sudan

75% MTN Benin

75% MTN Syria

100% MTN Guinea Bissau

50% MTN Cyprus

91% MTN Afghanistan

Branded names.

20% Belgacom International Carrier Services

49% Ghana Tower Inter Co


Appendix continued

Glossary

The table below describes some of the terms used in this report.

Term Explanation

3G Third generation internet connection that allows mobile phones to send and receive larger volumes of data, such as live

broadcasts, video clips and emails

BBBEE Broad-based black economic empowerment, a South African national initiative to enable economic participation for black South

Africans

BTS Base transceiver station

CDM The United Nations Clean Development Mechanism allows a country with an emission-reduction or emission-limitation

commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries

CDP Carbon Disclosure Project

CO2 Carbon dioxide

CO2e Carbon dioxide equivalent

COP 17 17th Conferences of Parties

Convergence Information and communication technology products and services combining voice and data

EASSy Eastern Africa Submarine Cable System

EDGE Enhanced Data for GSM Evolution (EDGE) delivers 2G technology that delivers advanced mobile services such as downloading

video and music clips, full multimedia messaging, high-speed colour Internet access and email on the move. It is five times faster

than conventional GPRS

EIG Europe India Gateway (EIG) submarine cable

EMF Electromagnetic frequency or radio signals or waves, or energy that travels through space

GB Gigabyte

GDP Gross domestic product

GHG Greenhouse gas; unless indicated otherwise, GHG emissions are made up of CO2, Methane (CH4), Nitrous oxide (N2O),

Hydrofluorocarbon (HFC), Perfluorcarbon (PFC) and Sulphur Hexafluoride (SF6). The United Nations has identified these six gases as

the greatest contributors to global warming.

GSMA Global System for Mobile Communications Association

GPRS General Packet Radio Service (GPRS) is a connectivity solution based on Internet Protocols that support a wide range of enterprise

and consumer applications


Sust

aina

bilit

y ov

ervi

ewEc

o-re

spon

sibili

tySu

stai

nabl

e ec

onom

ic va

lue

Appe

ndix

Oper

atio

nal r

epor

tsAn

nual

su

stain

abilit

y sta

tem

ent

Adva

ncin

g

sust

aina

ble s

ocie

ties

Term Explanation

HSDPA High Speed Downlink Packet Access (HSDPA), part of the evolutionary path of 3G

ICASA Independent Communications Authority of South Africa

ICNIRP International Commission on Non-Ionizing Radiation Protection: www.icnirp.de

ICT Information and Communication Technology

IFC International Finance Corporation

ITU International Telecommunications Union

King III King III Code of Corporate Governance for companies operating in South Africa

LTE Long Term Evolution

MMS Multi Media Services

MTR Mobile termination rates

MW Megawatt

OPCO Abbreviation for MTN operation

Major OPCO Our major operations are defined as those operations that contribute a significant portion of our annual revenue. They include:

Ghana, Iran, Nigeria, South Africa, and Syria (in alphabetical order)

RF Radio frequency

SEA, WECA, MENA South and East Africa, West and Central Africa, Middle East and North Africa. This categorisation is used to group and classify MTN

operations geographically

SEACOM Submarine cable linking South and East Africa

SMS Short Messaging Services

TEAMS The East African Marine System submarine cable

UNEP United Nations Environmental Programme

UNFCC United Nations Framework on Climate Change

UNWFP United Nations World Food Programme

WACS West Africa Cable System

WAP Wireless Application Protocol

WHO World Health Organisation


April 2011 Mobile World Ghana Telecoms Award • Best National Corporate Social Responsibility Telecoms Company

• Best Quality of Service Provider for the Year • Best National Mobile Money Service Provider

September 2011 Ghana Investment Promotion Council Best ICT Company of the Year

Association Jeunesse Levons-nous et Bâtissons (AJLB) NGO Youth Association Prize, for network expansion using solar power, and planting 22 150 trees throughout the country in recognition of the UN International Year of Sustainable Forests

May 2011 United Nations Framework Convention on Climate Change Clean Development Mechanism UN Approved Methodology to trade certifiable emission reduction credits for new tri-generation centre energy efficiency and carbon reduction methodology

June 2011 Liberia Environmental Protection Agency and Monrovia City Corporation Partnership recognition for wetlands cleaned up in Monrovia, to help prevent community flooding and reduce risk of drowning

August 2011 Chartered Institute for Logistics and Transport Annual Green Supply Chain Awards Best project in over R10 million category, for business

to increase efficiencies and productivity and reduce costs and waste

October 2011 Newsweek Green Rankings Global MTN Group's first time ranking in top 250 global companies for positive

environmental impact and for “trailblazing environmental management based on publicly disclosed information” (MTN is listed at number 123)

Athletics Federation of Guinea Bissau Accolade for MTN’s support to sports in general and athletics in particular

Ministry of Education Honours Honour for work in Eradication Illiteracy, and Adult Education Programme, which includes over sponsorships of 300 classroom sponsorships, 500 students and teacher salaries for a period of two years

Arabia Corporate Social Responsibility Awards MTN Sudan listed in top five best companies in Africa and Asia in CSR in Newcomer category, for its free eye camps and capacity building project to positively impact people’s lives by applying CSR policies and procedures within the frame of sustainability

November 2011 AfricaCom Best Network Improvement project for Long Term Evolution Pilot demonstrating bandwidth on average 5 – 6 times faster than 3G network

Awards and recognition

BASTION GRAPHICS

Documents

Welcome to possibility€¦ · Sustainability overview 12 Group President and CEO’s message 2 Delivering on our commitments 4 Executive summary 5 Sustainability and MTN’s business